The Law of Unintended Consequences at Work; Feds. Look to Pin Blame but Forget to Check the Mirror:
FTC To Check High Gas Prices
By ROBERT IMRIE
.c The Associated Press
The Federal Trade Commission became the latest federal agency to agree to investigate a spike in gasoline prices in the Midwest, with prices above $2 a gallon in Milwaukee - 23 percent above the national average.
Investigators will explore whether any competitive behaviors, such as price-fixing or collusion, are driving prices higher, FTC spokesman Mitch Katz said Wednesday from Washington.
The U.S. Environmental Protection Agency and the U.S. Energy Department sent teams of investigators to Milwaukee earlier this week to examine the issue amid a clamor of consumer anger and calls from politicians for government to do something to reduce prices.
FTC Chairman Bob Pitofsky met with U.S. Sen. Herb Kohl and other members of the Wisconsin congressional delegation in Washington Wednesday.
``He indicated that he doesn't see any legitimate reason why prices have spiked up as much as they have,'' said Kohl, a Democrat. ``We believe he is going to do everything he can as quickly as he can to get to the bottom of the problem. He cautioned these things cannot happen overnight.''
Gas prices have risen steadily since May when service stations started selling a new type of reformulated gas designed to cut down on air pollution in the nation's biggest cities.
In addition to supply problems with the new formulations, Erin Roth of the Wisconsin Petroleum Council, said other factors contributing to the runup in gas prices include the high cost of crude oil, increased demand during summer driving season and a patent dispute over the process to make reformulated gas.
Gov. Tommy Thompson and nine members of Wisconsin's congressional delegation, including Kohl, have asked the EPA to temporarily waive the requirement that only cleaner-burning gasoline be sold in six southeast Wisconsin counties, including Milwaukee.
EPA spokesman Dave Ryan said Wednesday the agency was reviewing that request.
The average price of a gallon of self-serve unleaded regular climbed to $1.86 in Wisconsin Wednesday - 6 cents higher than Monday, according to the American Automobile Association Wisconsin. A year ago, the average price was $1.16 cents a gallon. Last month, it was $1.46 a gallon.
Some average prices statewide Wednesday included $2.01 per gallon in Milwaukee, $1.83 per gallon in Green Bay and $1.81 per gallon in Superior, AAA Wisconsin said.
The national average price of gasoline was $1.631 on Monday, according to the Energy Department.
Service stations just outside the six-county region in southeastern Wisconsin where reformulated gas is required are running out of fuel as motorists line up to save 20 cents or more per gallon.
Meanwhile, inside the boundary, service station owners told the Milwaukee Journal Sentinel that business has gone down as much as 50 percent and may force layoffs. |
