Gas Price Fraud?

[Fuel Miser]

Apr 22, 2011
Federal Taskforce Focuses on Gas Price Fraud

WASHINGTON -- As gas prices creep closer to the $5 point, the Justice Department is taking the reins in the battle against fraud and manipulation at the pump.

Speaking at a renewable energy plant on Thursday, President Barack Obama said U.S. Attorney General Eric Holder was putting together the Financial Fraud Enforcement Working Group, according to the Associated Press. "We are going to make sure that no one is taking advantage of the American people for their own short-term gain," Obama said.

However, Holder has suggested legal reasons may be behind the increase in gas pumps, which is reaching $4 in some states and have almost hit the $5 mark in others. "Based upon our work and research to date, it is evident that there are regional differences in gasoline prices, as well as differences in the statutory and other legal tools at the government's disposal," Holder said in a memo accompanying the task force announcement. "It is also clear that there are lawful reasons for increases in gas prices, given supply and demand.

"Nonetheless, where consumers are harmed by unlawful conduct that has the effect of increasing gas prices, state and federal authorities will take swift action," he added.

According to the news outlet, the national average price per of a gallon of regular gas was $3.84 on Thursday, the day of the announcement. That price is approximately 30 cents higher than a month ago and almost $1 higher than a year ago.

Despite the pump prices taking a turn in the national spotlight, Obama has acknowledged there may not be much he can do about the price of gas in the short term. As the news outlet reported, gas prices have been on a steady incline because of tensions in the Middle East and northern Africa, and growing demand in emerging economies like China.

http://www.csnews.com/top-story-federal_task_forces_focuses_on_gas_price_fraud-58570.html

[bowtieguy]

i imagine holder and the goons will look to the sky and then proclaim there's either no shenanigans or there's nothing to be done about it legally.

once again, tough decisions can't be made.

politics is the primary reason...but we can't discuss it.

[dieselbenz]

Why deal with our own over consumption problem when you can speculate about conspiracy theories instead.

[theclencher]

^Ha ha, yup!

The Fraud Group is a fraud. The govt knows damn well where the money is going. This is just a dog and pony show to make it appear to the public that they are doing something. It will never amount to a hill of beans.

[imzjustplayin]

Originally Posted by theclencher

^Ha ha, yup!

The Fraud Group is a fraud. The govt knows damn well where the money is going. This is just a dog and pony show to make it appear to the public that they are doing something. It will never amount to a hill of beans.

hopefully..otherwise it might turn into a witch hunt and be an excuse for a govt. take over of the oil companies..

[dieselbenz]

Originally Posted by *************

hopefully..otherwise it might turn into a witch hunt and be an excuse for a govt. take over of the oil companies..

All of the world's largest oil companies are government owned so why not? Bring some sanity to this 'market'.

[GasSavers_GasUser]

It's the speculators too.

[Jay2TheRescue]

Yeah, all those people with online trading accounts that don't know what they're doing buying oil futures. If a lot of people buy futures, the price we pay now goes up, the higher it gets, more people want to buy futures. Its a vicious cycle that should be changed.

[imzjustplayin]

Originally Posted by tjts1

All of the world's largest oil companies are government owned so why not? Bring some sanity to this 'market'.

If you're implying that the government is "sane", then you're sorely mistaken.. If anything, I would blame the governments of foreign countries for being the problem.

Originally Posted by Jay2TheRescue

Yeah, all those people with online trading accounts that don't know what they're doing buying oil futures. If a lot of people buy futures, the price we pay now goes up, the higher it gets, more people want to buy futures. Its a vicious cycle that should be changed.

Yeah, how dare people participate in a free market! You're right, that should be changed, and instead we should go with a government regulated economy where in the bid of short term relief, they'll keep prices at unsustainable low levels before there is either an unexpected "pop" or a complete meltdown and catastrophic shock to the supply demand equation, something that could literally cause chaos. Free markets are good, even in the most extreme negative examples of what some call "price gouging" because in such a scenario, resources are allocated only to those who absolutely need it and have no alternative. For those who do have an alternative, they'll slowly migrate to that alternative. This also prevents people from "hoarding" because the price of the given commodity would make no sense to hoard unless there was upward pressure on pricing. This idea might conjure up ideas of cartels like debeers but in true free markets where the government isn't involved, cartels like debeers simply cannot exist and so no singular entity would have complete control over the commodity. The long term trade for oil is that it's a resource that is having more pressure applied to it, that the smallest disruption could mean skyrocketing prices because of the change in the supply demand equation. People are very short term focused and so attempting measures to artificially drive down the price of fuel despite data suggesting a needed price increase is only going to make things more distorted and more volatile when there is in fact an actual shortage of fuel.

If the idea of expensive gasoline frightens you, then you all should begin contingency plans for either living without the need for gasoline or for at least living with a significantly reduced amount of gasoline compared to your current usage levels.

[dieselbenz]

Originally Posted by GasUser

It's the speculators too.

Riiight, blame the speculators. Never mind the millions of new drivers being added to the roads of China and India every year.

Originally Posted by *************

If you're implying that the government is "sane", then you're sorely mistaken.. If anything, I would blame the governments of foreign countries for being the problem.

Yeah, they provide the vast majority of oil production and THEY are the problem. You live in a fantasy world.

Originally Posted by Jay2TheRescue

Yeah, all those people with online trading accounts that don't know what they're doing buying oil futures. If a lot of people buy futures, the price we pay now goes up, the higher it gets, more people want to buy futures. Its a vicious cycle that should be changed.

You're forgetting all those people SELLING oil futures into the market and taking the opposite side of the trade. Its a ZERO SUM GAME. When the contract expires, somebody has to take delivery of that oil meaning the trades have to sell out of their positions. If there is no physical demand at the end of the trade the price can't go up. If everybody is taking the same side of the trade, the price will and the traders get ****ed. It always has, it always will.