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How to lower gas prices
Here are 12 ideas to lower gas prices. Ten are from David Letterman and two or perhaps three are government ideas. Can you tell which is which?
12. Sell gas by the half-gallon
11. Sneak up to gas stations in the middle of the night and switch the price numbers
10. Cut out that expensive ingredient that gives it that delicious gas smell
9. Forget OPEC, start getting oil from Wal-Mart .
8. Stop Wal-Mart from selling gas at too low a price thereby taking over the world.
7. Step one: Oprah buys all the gas. Step 2: Oprah gives the gas away.
6. Stop gasoline stations from give awaying free coffee.
5. Build time machine, drive back to 1965 when gas was cheap.
4. Fill car with root beer. Cars won't know no better.
3. Release the recipe so people can make their own
2. Drive really fast so you're not driving so long.
1. Invade Iraq.
The government ideas? 8 and 6 (and arguably 1 which was also on #1 on Letterman's list). Here's the background. Minnesota's Commerce Department has fined a number of gas stations, often attached to Wal-Marts, for selling gas too cheaply.
The state adopted a law in 2001 that bars gas stations from selling gas without taking a minimum profit. These days, stations must charge at least eight cents per gallon more than they paid. The Commerce Department is now issuing its first fines for breaking the law.
Elsewhere, it is now illegal for a gas station to give away free coffee with gas. Walter Williams has the story and the analysis.
Thanks to Truck and Barter for the link.
Posted by Alex Tabarrok on May 31, 2004 at 07:25 AM in Economics | Permalink
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» Sorry. Gas prices are too low. from larry borsato
Courtesy of Marginal Revolution comes a pointer to the fact that Minnesota's Commerce Department is fining gas stations for selling gas too cheaply. According to state law, gas stations cannot sell gas without taking a minimum profit, about eight cents... [Read More]
Tracked on May 31, 2004 1:03:55 PM
» Gas Prices from Found on the Web
Great illustration of the current gas prices. [UPDATE (5/31/04): Funny Top Ten List on the matter. {via}]... [Read More]
Tracked on May 31, 2004 4:31:30 PM
» Higher Prices Are Lower Prices! from Brad DeLong's Semi-Daily Journal (2004)
Alex Tabarrok has the standard economist's reaction to Minnesota's (and Maryland's) minimum-gas-price laws: he bangs his head against the wall: Marginal Revolution: How to lower gas prices: Minnesota's Commerce Department has fined a number of gas stat... [Read More]
Tracked on Jun 5, 2004 10:40:04 PM
» Market Forces and Economics Professors from Brad DeLong's Semi-Daily Journal (2004)
More interesting than Chun's willingness to make contrary-to-fact implicit assertions about the cost structure of the retail gasoline market is the subtext of his critique of Alex Tabarrok. Let me bring this subtext to the forefront: Chun the Unavoidab... [Read More]
Tracked on Jun 5, 2004 11:04:14 PM
» Market Forces and Economics Professors from Brad DeLong's Semi-Daily Journal (2004)
More interesting than Chun's willingness to make contrary-to-fact implicit assertions about the cost structure of the retail gasoline market is the subtext of his critique of Alex Tabarrok. Let me bring this subtext to the forefront: Chun the Unavoidab... [Read More]
Tracked on Jun 5, 2004 11:08:07 PM
» Now Wal-Mart is selling cheap gas!! from Daniel W. Drezner
Alex Tabarrok at Marginal Revolution has a post showing that Minnesota and Maryland have enacted minimum price laws for gasoline, and are enforcing them against gas stations that are charging too low a price per gallon or are offering free... [Read More]
Tracked on Jun 5, 2004 11:36:21 PM
» Higher Prices Are Lower Prices! from Brad DeLong's Semi-Daily Journal (2004)
Alex Tabarrok has the standard economist's reaction to Minnesota's (and Maryland's) minimum-gas-price laws: he bangs his head against the wall: Marginal Revolution: How to lower gas prices: Minnesota's Commerce Department has fined a number of gas stat... [Read More]
Tracked on Jun 6, 2004 11:48:19 AM