Taking Gas in the Free State

General Assembly leaders in Annapolis have already taken to their predictable stances in regards to gas prices; pass more regulations. Senate President Mike Miller is already calling for price controls, seemingly unaware that those controls have created gas shortages in the past. There is no movement as of yet to cut the gas tax as I suggested yesterday, however there are still other factors at work.

Jay Hancock writes in today's Sun that Attorney General Curran wants to play both sides of the street on the issue of gas prices.

What should the poor gas stations do?

They'd better not charge too much for gas in Maryland - the attorney general says so. But they're not allowed to charge too little, either, thanks to the 2001 "Sam's Club" law that threatens harsh punishment for giving Marylanders the most affordable gas possible.

Think I'm kidding?

So far this year, Maryland Comptroller William Donald Schaefer has fielded 32 citizen complaints about service stations selling gas too cheaply and has busted several, forcing them to raise prices, according to his office.

I know you are as outraged as I am that stations have been trying to sell for less. I feel that $3.50 is a terrific price for a gallon of unleaded. It's probably not high enough, come to think about it. Former Gov. Parris N. Glendening and the other people who brought you the Sam's Club law might feel more comfortable with $4. Or $5.

But wait! That would get gas stations in trouble with Maryland Attorney General J. Joseph Curran Jr. He's against high gas prices.

"Like my fellow Marylanders, I am wondering why gasoline that was already bought and paid for by stations here has suddenly skyrocketed in price," Curran said last week. "We have many questions, and we want clear and understandable answers. ..."

And that reminded me of the laws that Governor Glendening did sign in 2001 that outlawed below cost fuel sales: SB 687 and HB 736. Quoting from the bill synopsis:

Prohibiting a retail service station dealer from selling motor fuel below cost unless the sale is made in good faith to meet competition, made as part of a final liquidation or closing of the business of the retail service station dealer, made as part of a bona fide charitable promotion lasting no longer than 2 days, or made under the direction or order of a court or government entity; etc.

It is entirely unsurprising that Democratic leaders in Maryland are blaming gas companies for the high costs of fuel in Maryland when the Democratic leadership took steps four years ago to ensure that Marylanders did not enjoy the full benefits of economic competition between gas stations. Hancock notes that this was the "Sam's Club bill", a bill designed to "level the playing field" as they love to say between the Big Box club membership centers that sell gas and the other dealerships in the area. Of course, when it comes to hurting the consumer's ability to have a choice in the services and goods they buy, and when it comes to hurting the consumer's ability to save their money in making those purchases, some things never change.

Incidentally, take a good look at the vote totals for the House and Senate bills. Only one current member of the Anne Arundel County delegation voted for these two bills. And since John Leopold is running for County Executive, perhaps he should explain his anti-consumer vote from 2001.