Why isn't gas being regulated like other essential commodities?

Question

It doesn't seem to make sense to continue letting the market guide gas prices... the market seems to be saying "s***w the consumer... keep making huge profits!" ... so why aren't we regulating prices like we do with agriculture? I don't get it.. it seems to me like there should be price controls, regulation etc. ... wouldn't it be relatively easy to bring gas prices down? By forcing it?

Answer 1

because regulation only further disrupts the situation and will only increase the hardship on those of us least able to afford it.

so-called "regulation" of agriculture is naught but subsidies which are increasing the cost of food, which is in addition to the cost of the taxes forced upon us to pay the subsidies.  talk about force!

if you want the government to do something, why not start a campaign to end the Fed's manipulation of the money supply and "monetary policy"?

Answer 2

We can only regulate agriculture because it's produced here.  We can't exactly send subsidies to producers in the Middle Ease -- not that that would be a popular idea anyway.  Price controls would only create shortages, because suppliers would simply take their oil over to China or India, where they will gladly pay for it.  We tried price controls already, and they didn't work.

http://www.fiendbear.com/gasline.gif

Answer 3

Like the previous poster said, we can't force the Organization of the Petroleum Exporting Countries (OPEC) to do anything.  You can urge them to increase the production of oil in an effort to reduce prices but you also have to remember that production capacity can only be strained so much, as well as the idea that the Middle East countries don't have to comply.

You also have to remember that we people are still willing to pay for such an expensive commodity because there are few substitutable goods available unless we all decide to purchase hybrids or decide to take public transportation.  As long as we are willing to pay the price we're paying, there is little the government or anyone can do.  You also have to remember that putting a price ceiling on gas will cause an excess demand for gas, which would lead to shortage in the long run (aka... we can't do that unless we want to s***w ourselves over).

Look at the United States for example.  Bush has begged OPEC to increase their production and the House tried to pass a Bill to increase taxes on gas companies (it obviously didn't pass).  

Besides, inflation is good right?  It keeps those food prices nice and high up there to cause increasing hunger around the world.  

[Answer: see above]