Even as the summer travel season is winding down, drivers have certainly noticed that gas prices are marching back up. Since the law of supply and demand hasn’t yet been repealed (or even suspended by executive order) the answer seems simple enough: increase the amount of gasoline available.

A recent Wall Street Journal article shows that the White House realizes its policies have been reducing the supply (and thus increasing the price) of gasoline. Here’s the story.

Last year, Sunoco announced it would have to either sell or close its refineries near Philadelphia. The Carlyle Group, a private equity firm, has agreed to buy the refining business, even though Sunoco has lost $1 billion running the refineries over the previous three years.

How is it possible for a company to lose that much money in the refining business when gas has been stuck at more than $3 per gallon for years? There are several reasons, but a big one is the cost of federal regulation.

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