Double Loop
Dual Federal Agencies To Investigate Gas Prices
Gas costs are rushing towards the $4 per gallon price. There are two different federal agencies that could have some stake in investigating possible manipulations of the industry. These two agencies have agreed to cooperate in these investigations. The effects of this increased enforcement, however, might be difficult to discern. Resource for this article – Federal agencies agree to cooperate on gas price investigation by MoneyBlogNewz.
What the Federal Trade Commission thinks about gasoline price increases
Gas prices got over $4 a gallon in 2008. About one year later, the Federal Trade Commission signed a “Final Rule” that officially prohibited “fraud or deceit in wholesale petroleum markets, and omissions of material information that are likely to distort petroleum markets.” The cost of fuel increases have been investigated by the FTC since this rule was put into place. There have not been any official fines or charges to the Federal Trade Commission even though there were investigations.
Cooperation with FTC and Commodity Futures Trading Commission
There is the Commodity Futures Trading Commission, or CFTC. This agency is smaller than the Federal Trade Commission as an agency. Financial investments are made in physical products, not businesses with Commodities and Futures. Today, the CFTC and FTC signed a “Memorandum of Understanding” that allows the 2 agencies to share non-public information about the fuel market. The corporations get to share the information to have a better idea of what the market looks like. Then, the businesses should be able to stop abuses.
The way fuel prices are determined
Gas and fuel prices, like all product prices, are impacted by a variety of factors. It takes a few months before the oil price change reaches the industry. Conflicts may change the fuel price. Also, the demand and cost of refining make a difference. The way the consumer feels has an effect on oil costs also. It will go up when customers are nervous. The FTC and CFTC cannot ever prosecute although there are accusations that oil businesses are making fuel prices go up.
Information from
The Price of Fuel
thepriceoffuel.com/whataffectsfuelpricing/
FTC
ftc.gov/opa/2009/08/mmr.shtm
CFTC
cftc.gov/
Figure Skating Practice 07-29-10 (double loop, axel, double flip, double salchow, combination jumps)