Keep an eye on rising gas prices

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E D I T O R I A L

Scioto Valley residents are wondering what a gallon of gasoline will cost when and if the United States goes to war with Iraq.

After all, it's more than $1.70 a gallon at Chillicothe-area stations this week, and we are in the dead of a cold winter where demand is far from peak. Prices jumped about 10 cents this week, following a similar boost the week before.

The experts tell us talk of war, terrorism, unrest in Venezuela, an unusually low supply of fuel and other complicated factors have pushed the price of oil on the world market.

These explanations has merit to a point, but we also note that energy giant BP this week posted an amazing 49 percent growth in profits for the final quarter of 2002. High oil prices were cited as one reason for BP's strong financial performance, which actually reversed a negative trend.

Although many residents (and more than a few Gazette readers have called us to complain about the rising prices) get angry with normal mid-week price fluctuations in our free-market economy, the recent trends warrant real concern.

The American Automobile Association, or AAA, has expressed concern about the recent gasoline hikes. While the group acknowledges the oil issues cited by the major gas suppliers, it added in a news release that "nothing fully justifies the dramatic increase experienced across the United States in the last month." The AAA spokesperson didn't come right out and use the phrase "price gouging," but the message was clear.

Our government should keep a close eye on the oil industry to make sure it does not exploit world tensions to boost bottom lines. Every penny or dime they charge takes money from people who might spend it elsewhere and help stimulate the economy.

Some states, including Ohio, are worried high energy prices will further drain state revenues and force higher taxes or more government cuts. Ohio's present budget crisis doesn't need any more bad news.

We urge both the federal and state governments to keep a close eye on gas prices and place appropriate pressures on the corporate giants that determine pump prices.

We also urge citizens to remain vigilant of examples of possible price gouging. If citizens believe it is occurring, contact both the attorney general's office and us.

Originally published Saturday, February 15, 2003