EDITORIAL

An all fumes, no flame proposal

Posted 8/31/22

Governor Dan McKee is tired of being quiet about inconsistent gas prices. It’s quite an interesting development, we think, coming on the precipice of an election where he is by no means …

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EDITORIAL

An all fumes, no flame proposal

Posted

Governor Dan McKee is tired of being quiet about inconsistent gas prices. It’s quite an interesting development, we think, coming on the precipice of an election where he is by no means guaranteed re-election — and especially more so when gas prices have been outrageous and inconsistent for months now.

Why, now, is it imperative to look into why certain gas stations have higher prices than others?

This phenomenon is nothing new. Even in non-inflation times, gas stations throughout the state set different prices, sometimes drastically, even if only separated by a mile or less than a station selling for less than them. While the governor is correct that each gas station is getting their gasoline from the same supply chain, we ponder whether that is indicative of local, predatory price gouging or simply the working of a free market economy?

The truth of the matter, as often is the case, is that nothing is quite so simple. Price gouging is not something that can be wholly diagnosed at the very last link on a supply chain — where the supply meets the consumer. Gas prices are high right now due to a combination of international conflict and the oligopolistic fossil fuel industry mutually agreeing that higher volatility in the market must lead to higher prices. It’s not the fault of your local Cumberland Farms manager, or the locally-owned garage on the corner that also sells gas.

This is a capitalism conundrum where, although the mostly powerless consumer is certainly being taken advantage of and being harmed through forces well beyond their control, they do have some modicum of power through their spending dollar.

If you think it’s outrageous that a gas station sells gas for $4.15 when you know of another one selling it for $3.85, then go to the cheaper one. Spend your dollar there. If that station selling for $4.15 is simply taking advantage of the situation and jacking up the price, they’ll quickly lower the price when they realize customers are catching on and not buying from them.

Legislators had a chance to provide gas price relief in the form of a gas tax moratorium or cut, and they deemed it too expensive — that there were other things more important to spend money on or put money aside for. For the record, that might have been the right call, as gas price inflation never lasts forever.

But for Governor McKee to try and paint a picture that local gas stations are villainously overcharging Rhode Islanders, we would need to know the financial picture of each and every business that sells gas. Maybe some of them need the extra five cents a gallon to balance their books, and maybe they’re just being greedy.

We can’t help but wonder how unwieldy and expensive an extended investigation into such a matter would be, and whether or not resources could be better utilized, literally, any other way.

editorial

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