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Cato Podcast

The Mystery of the Fluctuating Gas Price

Cato Podcast

Cato Institute

Immigration, News, News Commentary, Peace, 424708, Markets, Government, Libertarian, Policy, Politics, Cato, Defense

4.5979 Ratings

🗓️ 22 August 2006

⏱️ 6 minutes

🧾️ Download transcript

Summary


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Transcript

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0:00.0

Welcome, I'm Anastasia Glova bringing you the Cato Daily Podcast.

0:04.0

Full and edited versions of our podcasts are available on our website at

0:08.0

W.W. Kato.org.

0:11.0

There's more that concerns drivers than high gas prices. Many want to understand why the gas prices fluctuate so much even between gas stations that are often within blocks of each other.

0:21.0

Washington Post story last week explored why this is the case.

0:24.3

Managing editor of Regulation magazine Tom Firey digs a little bit deeper.

0:28.4

Why is there such a disparity in gas prices across the country and even within the same city?

0:32.4

Well, there's a number of different factors.

0:34.0

The Post article itself is very interesting being here in Washington, D.C.

0:38.0

Because of course we have three separate states or de facto states in this area

0:42.0

all with their different tax regimes area all with their different tax regimes all with

0:44.4

their different regulatory regimes. Maryland, Virginia, D.C. each have

0:48.0

different gasoline prices. Maryland and D.C. have a specific cent amount of tax on their gasoline.

0:55.2

Virginia has a specific cent amount plus a percentage amount in Northern Virginia,

0:59.5

which means the more gasoline goes up, the more the tax goes up as well because the percentage

1:03.8

adjusts upward so there's one set of problems and others regulatory problems you

1:08.8

know safety as far as transporting and then of course transport itself causes

1:12.3

problems you know a tanker truck kind to come into DC has to wind its way through streets

1:16.6

drivers demand more you need higher skilled drivers you have to pay them more so those there's some problems and then of course the other is regulatory issues.

1:24.3

Maryland, Virginia and DC have a number of very bizarre little regulations that help

1:29.6

decrease competition between gas stations which then means prices go up for drivers because it's

1:34.3

harder for us to shop and compare prices.

...

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