Preventing gas shortages

The state's action to temporarily lift some regulations on gasoline is a welcome measure. As Attorney General King said, it will provide "the flexibility to safely get fuel where it is needed and prevent disastrous shortages."

That sound logic should also apply to regulations that impede flexibility in wholesale and retail pricing. Currently, the shortages in gas supplies are relatively sporadic - occuring primarily in certain localized markets. They have been brought about by disruptions in the supply chain and by the panic buying that has followed. In order to ensure that these shortages are short-lived and do not become widespread, prices of gasoline must be allowed to adjust (i.e. rise) to levels supported by the market. Artificial controls on gas prices - including crackdowns against so-called "price-gouging" - are not the answer, and will only make the problem worse.