Why subsidizing the gasoline price is a bad idea?

Question

I'm doing my essay question., many governments are helping their consumers by subsidizing the price of gasoline, how this practice can be harmful ?

Answer 1

the fact that the government makes 3 times what the gas companies make by taxing them is ridiculous. Why not take a cut of that and do what you are saying. I tell you, the government is the true thieves in all this.  

Answer 2

Where does the government get the money to subsidize the price? From the people. So instead of each individual paying for gas as they need it, every tax paying citizen is paying for gas whether they use it or not. Why should a person that rides a bicycle be forced (through taxes) to pay for the gas of somebody else?

Subsidies are a bad idea. They hurt the free market and always result in higher prices. Although people often don't recognize the higher prices because they appear lower at the point of sale and people forget they are also paying for the product in higher taxes, so it looks cheaper, but itsn't.

Answer 3

Any forced reductions in the price of gasoline could cause a surge in demand and result in a problem with supply.  

As an extreme example, if today gas prices were suddenly forced down to $0.50/gallon all gas stations would be lined up for miles and would run out of gas completely. Even small reductions could potentially have a similar result.

Answer 4

The lower price means more use, which means more CO2 greeenhouse gases, it also means a lower investment in say hybrid or alternative power sources for vehicles.