And The Average Yearly Cost To The Consumer?

Allen April 25th, 2006

I read from the Best of the Web that Bill Richardson (D-NM) is asking the oil companies to pitch in money to help consumers with gas prices:

Richardson first asked the oil and gas industry to chip in during a
special legislative session last fall. On Monday, he renewed the
request and asked residents to contact the New Mexico Oil and Gas
Association to urge their members to help with high energy costs.

 
“New Mexico is ready to help distribute this $50 million if the oil
and gas industry will step up, help out and break their stunning
silence,” Richardson said in a statement. “This industry is enjoying
record-breaking profits while New Mexicans are feeling the pinch.”

Reading further in the Portales News-Tribune article, we read that Gov. Richardson is going to check into price gouging. No word as to whether Gov. Richardson will see if the law of supply and demand still applies.

Back to Taranto article that drew my attention to the issue, James whips out his calculator:

According to Census Bureau estimates, New
  Mexico had 1.93 million people as of last year. That means if Richardson
  gets his handout, he’ll be able to present each New Mexican with a check for
  a whopping $25.93.

I think perhaps James needs to get the gummit-version of a calculator. Each New Mexican would get at most $25.93. By the time you figure in administrative overhead, labor pensions, panel empowered to visit the impact of gas prices in the Virgin Islands, etc, New Mexicans would probably only get about $15 per person rebate.

Of course, the oil companies (who are rebating the full $25.93 to the government) will need to get the money for the largeness from somewhere.  One of the best ways is to raise prices…

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