Pricing probe

Nevada Gov. Jim Gibbons, concerned that retail gasoline prices have increased by more than 50 cents per gallon -- almost 25 percent -- in the past two months, and by almost $1 per gallon from their multi-year in last December, has called on state Energy Department Director Hatice Gecol to figure out why.

When economics students at UNLV want to find out why such commodity prices fluctuate, they at least have the good grace to pay a semester's tuition.

It's called "the market," Mr. Gibbons. If we had a gallon of gasoline for every posturing politician who's ever called for a probe into prices that rise -- at the same time government is raising the taxes that form a component of those prices, and limiting development of the underlying resource, as governments now largely block the development of new American oil fields and refineries -- we'd be doing a lot more driving this summer.

Since those who look for conspiracies as their first source of explanation for any phenomenon must surely realize falling gasoline prices could easily signal a plot to drive out independent filling station owners and shift their market share to stations owned or controlled by the oil giants, why isn't there ever a "conspiracy probe" of falling gasoline prices?

Because independent gas station owners aren't a very vocal constituency, of course ... while consumers in search of cheap gasoline are.

A spokesman for AAA said over the weekend Ms. Gecol will probably find gas prices are up -- when denominated in dollars -- only because the value of the over-printed U.S. greenback has fallen on international markets.

If Gov. Gibbons would like to save Nevada consumers some money, he should assign his staff to issue some reports on the economic costs through propped-up high prices of the existing state policy to artificially ration -- for no good reason but protectionism -- the available supply of licenses that allow Nevada residents to practice haircutting, manicures and dozens of other "privileged" occupations.