OIL WOE$ -- Violence at the Pump

A tipping point has been passed. The price of gasoline is now triggering incidents of violence at the gas pump, the worst so far in this report from ABC.

MONTGOMERY, Ala. Aug 23, 2005 — The case of an Alabama gas station owner run down and killed by a driver who police believe was escaping with $52 worth of fuel comes as no shock to industry experts. "As the price of gas climbs, people's values decline," said Jeff Lenard, spokesman for the National Association of Convenience Stores.
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[Hassain, or Tony] Caddi, owner of the Fort Payne Texaco, died Friday after he grabbed onto the vehicle and the driver dragged him across the parking lot and onto a highway, police said. Caddi fell from the vehicle and was run over by the vehicle's rear wheel. A search for the driver and a gold or tan Jeep-style SUV continued Monday.

The Petroleum & Convenience Marketers of Alabama tells gas retailers to "never try to take action themselves" during robberies and drive-offs, said Arleen Alexander, the group's executive director.

"But I can understand why someone would want to fight for their property," Alexander said. "Fifty-two dollars doesn't sound like that much, but with the little they're making these days that's a lot."

Gasoline theft cost retailers nationwide $237 million in 2004 more than twice the $112 million loss in 2003, according to NACS.

Pump theft, and violence, is not new to America. It also took place in the '70s during the years of rationing following the Arab oil embargo. Steps, mostly successful, were taken to discourage theft and violence. While most of the changes made thirty years ago are still in place today, there is a sizeable generation that has not faced this issue until now. When a tank of gas can cost over $50, which for some is more than a day's take-home pay, it's easy to understand why someone might be tempted to steal. In most states stealing gasoline is a felony; in any state running over the station owner most certainly is felonious as well. Someone in Alabama is facing, at the least, serious prison time.

Using history as our guide, next will come the demand from the bleeding hearts for the government to "do something" about rising gasoline costs. Please, politicians, resist the siren call to "do something." The seeds of price correction are contained within today's high prices: when Americans have had a time to think about it, they will begin using less fuel by cutting out unnecessary travel. (And let's face it, there's a lot of unnecessary travel taking place.) Once demand is lessened, reserves will increase and the price will go from outlandish down to merely avaricious levels. (At least for awhile. The long-term prospects are not good.)

The worst thing would be to invoke rationing again. It gives consumers the worst of all possible worlds.

As for the thefts and/or violence, government in its role of protector of citizens should treat each case in an equally stern, even harsh, manner.

Many service stations in our part of the country have gone to systems where one cannot obtain gasoline without first guaranteeing payment, either through credit cards, debit cards, or convenience store pre-paid cards. As much as we miss the old days where you could just waltz into the office after filling your tank with $18 of regular, toss over a $20 and still buy a Coke and a candy bar (with change), such pre-emptive moves are necessary in today's society.

When gasoline hits $3 or $3.50 per gallon, the tipping point for some of our less philosophical or moral citizens becomes a trigger point. Before that stage is reached examples need to be made to show that society will not tolerate gasoline outlaws.