Thursday, May 04, 2006

Partial Solution to Gas Prices?

When politicians discuss the increase in gas prices, they often cite varying standards in gasoline in different states. I am not sure if there is any concrete evidence that this comprises a significant part of the increase. If it does, I thought that perhaps it would make sense for states to pact together and create one standard.

For instance, Ohio, Kentucky, West Virginia, Indiana, and Michigan could all agree to the same gas standard. Would this make an impact? How much of an impact? I would say that if the impact were only 10 cents it would be worthwhile. If it did change prices in those states, perhaps others would join and drop the price further.

Is this practical or would this make a miniscule difference?


Blogger Steve said...

I think the price change would be minimal - perhaps 10 cents, like you suggested. It would make a small difference and would prevent short term supply disruptions, but no big changes. The biggest problem is world demand for oil, and there's nothing we can do about that.

5/06/2006 11:35 AM  

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