Wisconsin’s gas prices are in the top 1/3 nationally, slightly higher if we remove outliers like Alaska, Hawaii, and California. Introductory economic theory dictates that any legislation that prevents, hinders, or otherwise impedes the price mechanism from making incremental changes as necessary can only make things worse. Leave it to the politicians to carry-on about their “defense” of consumers via price-gouging laws.
What is price gouging?
The correct answer is: it doesn’t exist. The political answer, however, varies by state and/or municipality – which is the hallmark trait of arbitrariness. In Wisconsin, the “law allows gasoline wholesalers and retailers to only change prices once every 24 hours.” By this definition, a Michigan firm has been fined for raising its prices in the aftermath of Hurricane Katrina – not for raising them a certain (yet still arbitrary) amount, mind you – but for raising them more than once in a 24-hour period:
“The gas pricing law is clear,” [Wisconsin Attorney General] J.B. Van Hollen said. “Posted prices are to remain in effect for at least 24 hours following a price change. My office will continue to work with the Department of Agriculture, Trade and Consumer Protection to ensure that this consumer protection law is followed and enforced.”
Of course, armed with this knowledge in the future, I imagine that Krist Oil will simply close their 67 stores the moment they realize that they’ll be legally bound to sell at a loss for the duration of 24 hours, after which time has elapsed, they can reopen, and post the new, correct prices.
Krist Oil isn’t a megalomaniacal component of Big Oil – except that they distribute under the Citgo brand. This fine isn’t coming out of the pockets of corporate fat-cats, big-time shareholders, or CEOs. This fine is coming from your friends, families, and neighbors who had the gall to sell you something you wanted to buy. By all accounts, Krist Oil Co. appears to be a moderately successful supplier of oil, diesel, fuel and propane in the upper midwest – a moderately successful supplier who has voluntarily put itself at a disadvantage thusly: “None of the oil that we use in our products has been imported from the middle east.”
But what the hell. According to politicians and bureaucrats like Mr. Van Hollen, no disruptions in supply should ever adversely affect the customers – they’ll of course be able to obtain at the same prices, and in the same quantities, as prior to the disruptions, even though the same quantities aren’t available. It is the persistent belief in metaphysical impossibilities, and the advocacy of programs founded on a combination of those beliefs and arbitrary judgment, which comprise the serious moral flaw characteristic of all politicians: either he believes what he says is correct, in which case he’s an idiot; or he doesn’t, in which case he’s a liar.
In neither case, however, is he fit for public office.
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As an aside, it appears Krist Oil Co. needs a new website.