Why can't the Government just put a Cap on the price of Gas ?

Question

We are being ripped off by oil refineries who are making record profits, from our misery. They are driving up inflation prices and costing millions of jobs.

Fact:
The oil companies are keeping the price of gasoline artificially high by reducing the capacity of our Oil Refineries, closing them down, or sabotaging their own pipelines.

Fact:
The price of gasoline is at record high, even though the price of oil per barrel is not the highest it's ever been.

If we force the companies to set the price of gasoline at $2.50
a gallon. They will have to produce more gasoline to make profit.
Right now they are cutting gasoline production and raising prices. Someone needs to tell the government that this will not be tolerated. This is price gouging and it is WRONG.
We need to put a Cap on the price of gas. NOW !!!

Fact:
Gasoline manufacturers are making record profits, huge profits, at a time when supply is "scarce" and oil prices "volatile".

The production of gasoline is not maxed out right now. Oil refineries are not running at full capacity. That is clear.
They are earning more profit by producing and selling less.

How can the profit be only 10 cents per gallon ?
The cost of production of one gallon of gas did not rise that fast.

The average price per gallon is $3.08 right now, which means if they make only 10 cents per gallon now, they must have lost money when gasoline was $2.65 a gallon.
The cost per barrel of crude only went up about $5 per gallon since then.

Answer 1

If they put a cap on the price of gas, that would pretty much defeat their goal of making the rich richer and not giving a ding dang about the rest of us.

Money, money, money, money, money, money, money, money, money, money, money and more money...IN THEIR POCKETS....that's why!

Answer 2

It wouldn't make sense considering the nature of the problem. Price caps would mean little on the international market (the price is the price), but the Government would be subsidizing the difference (oh boy! More debt), and the investors that are driving up oil prices would continue to run them up, and demand destruction wouldn't take place due to the subsidies. You need to look at the real problem. For those who say we have a "free market": there has never been such an animal: they are all regulated to some degree because if they are not, then stealing is legal. Good grief people. We have a market economy, but it's not total anarchy, and people need to get it through their heads that anarchy sucks.

Answer 3

In order for you to justify a price cap, you have to demonstrate that there are excess profits. Either that or you have to demonstrate that suppliers will supply similar amounts even if they get less money. Or, you wouldn't mind if there was less gas - at least there might be a fairer way to distribute it. For example, people who really needed the gas could get up earlier.

Now, I think you have tried to do that, perhaps not to everyone satisfaction. For example, one person claimed that only 10 cents of a gallon of gas is profit, while you claim that they are sabotaging their own pipelines.

I think a good start would simply be to look at oil prices and gas prices over the last 10 years and ask ourselves if $2.50 is not an unreasonable price cap for the current oil price we have now. I imagine it is.

The idea that refining is the problem basically admits that higher prices are just rationing anyway: that the supply is basically fixed due to refining capacity and that a price cap may be a fairer way to distribute the fixed amount of gas. If refining is the issue then higher gas prices won't change anything except some people can't afford the gas.

Answer 4

Fact: The ability to build new refineries is highly restricted by government regulation and interference by 'civic' groups. Everyone wants more gas, but nobody wants it made in their neighborhood.

Fact: The largest markup in gasoline prices is federal, state, and (sometimes) local taxes. On average, the oil company makes less than 10 cents profit per gallon, while the government takes over 50 cents when they contributed NOTHING to the process.

The easiest way for the government to drop gas prices would be to rescind the gas tax. They could also set the market price by fiat, at the risk that if companies can't sell profitably at that level, they'll simply stop altogether.

I'd suggest you a) take a course in basic economics before making silly comments, and b) move to a country with a dictatorship, since you seem to want that kind of government.

Answer 5

Refer to 1979 OPEC cut production, leading to a price increase.

Pres. Carter put a price cap on gasoline
He then had to institute a gasloine ration because theyre wasn't enough. Ask your dad about waiting in line for a couple hours to buy gas on the day you were allowed to

Thats why we don't cap prices, and I second the grab an economics book, it'll help you more than you know.

Answer 6

We need to stop depending on gas so much.

Take a peek at drivers as they pass you on the road. Take note of what kind of car they're driving and how many people they're transporting. There are tons of people driving vehicles that are way bigger than they need to be in order to transport only themselves to wherever they're going. That uses a lot more gas than necessary.

How many of us have driven to any place that is more than a half-mile away? Why is that necessary? Because we're f-ing lazy.

Yes, it's frustrating that gas prices are so high, but historically, we are the biggest consumers. Yes, we need to get to our jobs which are sometimes too far away to walk or ride a bicycle, but that's life. We're f-ing lazy, and lazy people don't have a right to b*tch all the time about gas prices.

Buy a scooter. Buy a motorcycle. Ride your bicycle. Walk. Save as much gas as you can, and structure your life in a way that absolutely minimizes your own consumption of it. People in other countries have to live close to where they work... they have no other choice, because they don't have the luxury of an automobile.

If you don't like something, change the way (or extent to which) you depend on it.

Answer 7

Why is it the government's responsibility to make sure you don't "feel" ripped off at the pump?????

Usually, when the government looks out for the consumer's best interest we get screwed more because they want a piece of us too.

Why don't you short Crude if you think gas and oil are so high.

I just enlightened your broke stupid ***.

Quit whining. You're probably big into carbon credits and electric cars.

Hop on your bike and pedal to the coffee shop --pick up some soap and a razor on the way.

Answer 8

I hear ya, but I have a few facts of my own...

Fact: Oil Companies are not properties of the U.S. Exxon/Mobile gets about 8 cents per gallon, so if they cut that, we're still up sh**'s creek.

Fact: Our gov't put a limit on oil refineries. One burned down, so output is lower.

Fact: The only way we can force the companies to put a $2.50 limit on their prices, they'd have to put a limit on how much we can consume.

I can keep going, but that's enough food for thought.

Answer 9

Start walking brother...
We MUST discourage the government from fixing our problems, we are already too dependent on their intervention, the more we DEMAND of them, the more power we allow them to take from us. The petroleum industry has been allowed to RUN OUR ECONOMY, not by the government, not by politicians BUT BECAUSE WE LET THEM! WE are the ones who rely on gas daily, we drive for fun, because its a little quicker, because we want to live in the suburbs and work in the city or in a different city...WE are the ones who cuss out the GAS STATION ATTENDANT, who has nothing to do with price or conspiracy as we JAM THE OFFENDING NOZZLE INTO OUR TANK AND PAY, PAY, PAY!!!
I walk everywhere, I no longer EVEN OWN A CAR, if you MUST have a vehicle, convert it to BIO DIESEL or ETHANOL, because if you give our government enough power to tell the petrol companies what to do, then you'll have no freedom at all...Gas rations anyone?

Answer 10

It is time for we the people to break the chains of oil and gas dependency. We should consider the us use hydrogen for fuel, or electric cars with rechargeable batteries. Solar panels at home. Wind turbines !!

Answer 11

Why not govt. put a cap on prices of all goods? It will be great. Why not evrything is capped at $1 a lb/ gallon/ unit? How great is the idea.