OT Cut fuel price to commercial vehicles

One side effect of high gas prices is increased prices on goods that have to be transported by air or truck. At one time, Diesel fuel was a lot cheaper than gasoline. It could be that way again if government were to act properly in combating inflation. Sure, the cost of money has a definite effect, but what's wrong with controlling the cost of commercial transportation? Let the price of gasoline go where it has to in order to encourage adoption of more efficient automotive systems, but keep a lid on jet fuel and Diesel oil to reduce upward pressure on the prices of everything else.

Reply to
Chuck Olson
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Makes too much sense. In order to get such a law passed, you'd have to have armed citizens in the Capitol building, putting rifles to lawmakers' heads and suggesting that they vote correctly on the measure.

Reply to
JoeSpareBedroom

The government couldn't easily mandate the price set by the producers, but they *could* change the tax structure to make fuel cheaper for certain types of businesses, like truck drivers. I could be wrong, but I doubt that cheaper fuel is going to make truckers driver more. They drive when they have loads to deliver. An 18 wheeler isn't the family car.

By the way, the truckers my company uses adjust their per mile rate downward whenever they can, which allows us to lower the price of the product we sell. Our truckers aren't saints - they're just smart. I suspect others do the same for their customers. Otherwise, competition would put them out of business quickly.

Reply to
JoeSpareBedroom

On the surface this seems like a good idea but if you look a bit deeper you will see subsidizing fuel costs for one group of people will lead to abuse and eventually resentment by the other side. Someone will have to pay the costs of subsidies and it usually ends up being the middle class. The best way is to let the market determine what the fair price of fuel is and users will modify their behavior accordingly.

Reply to
badgolferman

Right, Subsidies are crap. I'm talking about control by law - - pin the price of Diesel and Jet fuel to 60% of the price of gasoline - - something like that. Sure, Diesel Mercedes and Diesel VW drivers will make out - - why not - - small segment of driving public.

There is no fair price of fuel. There is only what the oil companies feel like charging. They do it because they can. If law says they can't, then they won't. Last summer the price of gas declined for only one reason - - there was a proposition on the Fall ballot to make the oil companies pumping crude out of California ground pay for the privilege, as they are required in Alaska and other states. The gas companies mounted a high power TV assault on the proposition - - why shouldn't they - - they had all the money they needed to "guide our thinking", threatening they would raise the price of gas if the proposition passed. The public was lulled into apathy by the falling gas prices, and failed to pass it. Did the price of gas stay down? Once the danger has passed, it climbed like it had eyes.

Reply to
Chuck Olson

Price controls don't work but actually worsen inflation, and a about the only thing government can do to alter prices is change the tax rates on various fuels. But those taxes are needed to pay for the roads, and it wouldn't be fair for other people to subsidize the roads.

Diesel is actually cheap compared to gasoline when you consider the amount of energy per gallon.

Reply to
larry moe 'n curly

Is Jimmy Carter back?

mike

Reply to
Mike Hunter

Jimmy Carter didn't implement wage-price controls; it was Richard Nixon who did, back when inflation was only about 4.2% a year. But Carter appointed the Federal Reserve chief who finally fixed the inflation problem initiated largely by Nixon and OPEC.

Reply to
larry moe 'n curly

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