Why doesn't the government put a cap on fuel prices ???

Question

I live in a small community where making $1500.00 a mo is pretty good & it is still hard for me to afford to pay my bill & buy fuel just to get back & forth to work! I know there are a lot of people out there in the same predicament as I am.
Wages aren't going up but everything else is. Why can't we seriously do something about this. I've seen the chain mails suggesting everyone stop buying gas on certain days, but lets be realistic, if gas goes down on that day how many of us aren't going to fill up or a least buy some in case it goes back up the next day?
I know that the government has put a cap on fuel prices before, why will they not do it again? Do they want to put all of us in the "poor house " ?

Answer 1

Because we live in a capitalist society that won't put restrictions on something like that. In reality, we have some of the lowest gas prices in the world.

Answer 2

I think you ask a valid question that the government should answer. Your right the Government has put price caps on strategic commodities in times of war and national crisis. It can be done. The question is do they have the will to do it?....NO. Big oil companies contribute huge amounts of money to political coffers (both sides not just Republicans) and very few in Congress would risk thier wrath. Secondly like any other commodity in demand its going to be "Charge what the freight will bear"....in other words charge whatever people are willing to pay. I suspect at some point gas prices will take so much money out of peoples pockets it will cut down on thier spending and youll see an economic slowdown. Maybe then the Govt MIGHT do something. And while its true that Europeans pay more than we do most of Europe has the benefit of Mass transportation. Something we dont always have access to here except in very urban areas. If you have a 40 mile commute to work your out of luck.

Answer 3

If the government puts a cap on fuel prices, we will end up losing supply. The world oil market simply would tolerate being told that they can't sell their oil at whatever price the market bears. The oil producing nations would simply allocate the oil ensewhere like China or Russia, both highly industrializing and oil demanding nations where the market would allow it. So, you choose, you can pay the current yet relatively low prices for gas and get it when you need it or you could pay a lower, capped price and never be sure that the pump would have gasoline when you got there. That is if you could ever get to the front of the long line you would be waiting in.

Answer 4

The government shouldn't put a cap on fuel prices, the problem with that is that it won't work. I think Hawaii has something like that and its horrible. Like one day the price might be one way and then it switches and goes up or down. If you interfere with prices capping or windfall taxes you interfere with the workings of the economy and thats called socialism. I don't see the USSR around anymore, point made. I understand you pain.

The problem with the high gas prices is that people like SUVs and are driving like theres no tomorrow, so we are using alot of fuel in a situation where we should be tightening our belts. The prices will continue to cline until Americans start using less gas. Unfortunately since most people are idiots and the prices will continue to climb.

Answer 5

Tell us WHEN the government has ever put a cap on fuel prices, under ANY administration.

You had better start car pooling, or using public transportation, or find a job closer to where you live. Another possibility, and this HAS been started recently by some companies -- see if you and your fellow employees can get a four day work week, 10 hours a day.

Answer 6

This gets asked about every 10 days around here. The answer is because there is an inelastic demand (ie. a shortgage) & a cap on prices will result in people waiting on 4 hour gas lines just like in the 1970's. Pricing is an efficient means of rationing. Those who need it most will pay the most.

Answer 7

It's very simple economics: supply and demand.

If you put an artificial control on prices to cap them, then the oil companies will respond by cutting supply. You will see gas lines at least 1 mile long, like in 1973-74, when supplies were cut by OPEC.

The oil co's are not stupid.

Right now, there are no shortages of gas, precisely because there is no cap on pricing. The only way to cut prices (without cutting supply) is to cut demand - American drivers will have to drive fewer miles, buy higher mileage cars and give up their V8 pickup trucks and SUVs.

Ethanol is like a drop in the ocean - it is nothing except a wealth transfer program from consumers to the corn industry (ADM, Cargill, etc.)

Hybrid cars are a wealth transfer program from consumers (and taxpayers who foot the bill for the subsidies and tax credits) to mostly Toyota, but also Honda and Ford. They don't make enough of a change in oil demand to make a difference.

Sorry to be blunt, but there is no 'magic bullet' to solve the problem. People have to make significant changes to their lifestyle if they want gas prices to fall.

Answer 8

final 3 hundred and sixty 5 days there grow to be communicate approximately including yet another 50-cent tax on a gallon of gas to shrink the federal debt. that concept has long gone out of the window. we could continually faucet our federal oil reserves, 730 million barrels, yet which could be a huge flow by ability of the fed government. If Prez Obama does that, particular adequate the residing house Republicans could whinge till the moon cries that we would desire to maintain our oil reserves in verify. by ability of how NYC's $3.80 a gallon.

Answer 9

Capitalism

Answer 10

when gas prices go up who make's the profits the oil companys
The goverment can cap it. The prices should be frozen for a period of time. We allso have the Alaska pipeline which we should use and fine more oil, after all isnt that the reason we bought Alaska ? I welcome you to my website at Http:www.freewebs.com/psantee/ please feel free to sign the guest book.
Patricia