Listening to the radio over the last few days, there’s been more talk of getting the government to step in and control rising gas prices. I don’t think anyone understands how difficult that would be.
Sure, the government could probably affect prices of our domestic production, but we do still import much of our oil. What’s driving up oil prices globally is that demand is increasing faster than supply, therefore if global oil producers see less profit by exporting to Canada, they won’t. They have plenty of other countries to send it to.
Then people talk about asking the government to suspend the gas tax, or change it to a fixed amount. If you suspend it, great, but what are you willing to give up to get that? That reduction in public revenue would have to come out of some kind of public program. Setting the tax at a fixed price, rather than a percentage of gas price, could be fine as prices are going up, but what if they do end up coming back down? Then people will scream that they’re paying too much again.
Further, asking for intervention on the price of gas is a short-term band-aid solution that will make the future even more painful as prices continue to rise