Why can't the government step in and reduce the price of gasoline?

Question

We have enough resources to reduce the price rather then keep sending more money into the war in Iraq.
I am not against the war, but feel we should do more for our own.

Answer 1

because they are getting kickback from the oil companies

Answer 2

WHY?, because the government would not profit from it....the money spent on the Iraq war returns ten fold into the pockets of the leaches who feed off the defense spending. And two, if the price of gasoline does not increase, as it has in the rest of the world, then people will continue to buy Hummers and run there air conditioners endlessly...America needs the price wake up call the rest of us have had...I pay 1.25$ Canadian a litre, premium, and we have far more reserves than the US...the UK pays I have recently heard 1.25P per litre (80p 2 years ago) and others pay much more...The US still has some of the cheapest pump prices in the world and are one of the highest importers of fuel. So let the price rise and watch the demand drop and with that just maybe us who drive VWs will get a break...

Answer 3

The open global oil market is not up for control by one country, even if it is the United States. Why are the oil companies evil if they put their money on the line to get more of the commodity (oil) that proves to be a money maker. If you had a guarantee a certain stock was going to rise, I have a feeling you would invest all you could to capitalize on the opportunity. The open markets and the corresponding prices are the one thing that should cause change. The government getting involved is like dumping metal filings in a combustion engine.

Answer 4

In fact the government could reduce the price of gas. Have you ever noticed the sign that says the price and than says all taxes included? After crude oil costs, taxes are the second largest contributor to the price paid at the pump. Together Federal and State excise taxes on fuel account for an average cost of approximately 62 cents per gallon. lift taxes on gas and your price goes wayyyyyyyyyy down. the dems in congress would never let that happen though so good luck

Answer 5

1) The government does not set the price for gas
2) Oil which is priced on the global market dictates the raw material cost.
3) Weakening dollar due to debt and trade imbalance make it so more dollars are needed to buy oil.
4) Very little way for government to reduce price except by tax reductions at pump but that money would be needed to be replaced with higher other taxes.

Answer 6

Government can easily lower the cost of gasoline. Looking down the channels through which gasoline is delivered to the consumer, you find that more than 50% of the price at the pump is a result of taxes paid by the various refiners and distributors involved in the process of delivering these fuels to the consumer. As with all businesses and industries, when these taxes increase, those costs are simply passed down to the consumer via higher prices. If you believe you are being best served by your government every time they try to step in and "fix" something, you are wrong. A simple understanding of economics reveals that too much government legislation and control is just as dangerous and costly as not enough. Take a guess as to which end of this spectrum we currently live.

Answer 7

The price of gasoline is set on the world market. All the government could do is spend tax dollars to subsidize the gasoline industry. All you are doing is paying for your gas at a different level.

The only Way to reduce the price is to reduce world wide consumption. And the only way to do that is with a higher price.

Answer 8

Because this is not a socialist country for one thing. Price fixing never works. For instance, In Minnesota, the state has fixed prices on gas and when a dealer wants to cut prices to give discounts to senior citizens or maybe he wants to increase his sales, he is liable to be charged with a felony. He is told he cannot do that because prices are fixed at a certain percentage above wholesale prices and it is illegal to change his prices for any reason.

And do you know why the price of gas is so high? The government at all levels are taxing us into the poor house with gas taxes. If they stripped all the taxes, gas would cost just over a dollar a gallon. I'll be willing to bet that your state is talking about raising taxes even more because they have to build more highways to handle the increased migration of illegals .

The government has nothing to do with the exploration of, the drilling of, or the shipping or refining of any drop of oil or gasoline. It has nothing to do with the production or sale of it, yet it holds its fat greasy hand out and takes more money in taxes than those who do all the work to get it to us make in profits!! Next time you hear Ms. Clinton talk about the obscene profits made by the oil companies, ask her about the even more obscene taxes they make us pay to enjoy the privilege of driving our cars.
Cut gas taxes at least at the federal level and give us a break!

Answer 9

I love the higher prices! I drive over 60 miles to work every day and don't mind the price of gas because: I drive one of those fuel efficient vehicles. I have a sports car that gets over 25 miles per gallon, I also have a mini truck and a five passenger sedan that get almost 35 miles per gallon..

So to the hogs that drive big SUVs and are alone in the vehicle when commuting to work - Ha Ha, stop your complaining. Invest in a fuel efficient vehicle for commuting and a low fuel efficient hog for pulling you boat and lugging the kids around. I did this for years and got a insurance break for driving the hog under 7500 miles a year. You can then have the best of both worlds.

Answer 10

Yeah, and you probably drive an SUV or some other gas-guzzling monster. You want the government to help you pay for your gas? Come on! Why don't you take care of yourself, ride a bike or walk instead of using all that gas. Find ways to reduce the amount of fuel that you consume. Prices are only going to get more expensive, as the oil becomes harder to find and demand from China and other emerging markets becomes greater.

Answer 11

lets see the people put a little effort into it by refusing to buy gasoline until the price goes down
we would not have to go long before they would be forced to lower the price
if we all stick together we could make a difference without congress