CBS Pushes Liberal Price Gouging Storyline (Again)
CBS Pushes Liberal Price
Gouging Storyline (Again)
Evening News favors new allegations
over other reasons for high prices, ignoring FTC report that found
no price manipulation.
By Ken Shepherd
Business & Media Institute
June 6, 2006
When the federal government reported on May 22 that
there was no concerted effort in the oil industry to manipulate
gasoline prices, CBS Evening News ignored the news. Yet two weeks
later on the June 5 Evening News, correspondent Sandra Hughes was
reporting price fixing allegations by Californias attorney general
and a consumer group.
Hughes began her story noting that Californias attorney general is
demanding oil company executives testify under oath about gas
prices. This is legal thievery in my view, and it is because it is
an oligopoly, Hughes showed the states top lawyer, Bill Lockyer,
arguing.
Lockyer is known for once
suggesting at a press conference in 2001 that hed like to see
former Enron chief Ken Lay raped in prison and for taking
fast food companies to court
in 2005 over French fries.
To agree with Lockyer, Hughes introduced Tim Hamilton, a petroleum
industry consultant hired by a consumer group to investigate why
Californias gasoline stockpiles run so much lower than the rest of
the country. In fact Hamilton
authored a study for the consumer group, which was the liberal Foundation for
Taxpayer and Consumer Rights. His study charged oil companies with
deliberate price manipulation in California.
Although Hamiltons study came out two days after the Federal Trade
Commission (FTC) found no evidence of price gouging in the petroleum
industry, Hughes failed to point out the government verdict.
The CBS correspondent also left out other reports, including those
from Californias own state energy department and the federal
Government Accountability Office (GAO), that placed blame on
government for higher fuel costs.
Most (about 90%) of our gasoline is
refined in-state, but additional quantities of gasoline and blending
components are imported because refining capacity cannot keep pace
with growing demand, the
California Energy Commission
noted on its Web site. The commission also lists stringent federal
air quality regulations, heavy demand, and isolation from other
refining centers in the United States as contributing to high gas
prices.
Californias taxes are also a significant factor in gas pricing.
In addition to 36 cents per gallon in federal and state excise
taxes, Golden State drivers pay on average roughly 8 percent or
between 16 and 25 cents to a gallon depending on the local tax
rate and the final price of the gasoline, according to the
California Energy Commission.
A June 2005 study by the GAO demonstrated that Big Government had a
role in producing pain at the pump for some consumers.
Although special gasoline blends mandated in states like California
have helped reduce emissions and improve air quality, the
introduction of these blends appears also to have divided the
gasoline market, the federal agency concluded. Overall, this
transformation of the gasoline market has complicated the supply
infrastructure, increased production and delivery costs, and reduced
the availability of gasoline, in some cases.
The Business & Media Institute reported on
the medias
lack of interest
in the FTC
price gouging report.
