We all want price to cut down on filling up our Fuel Tank – right? I know I need it, my truck only gets 16 miles per gallon! Don’t ask me how I do it because I have no idea whatsoever.
If we were to look at a free market economy, there are two main ways to bring down the high price of a product that everyone uses: you either increase the supply or you cut down the demand. It sounds easy, but it’s not always as easy as it seems. Let’s cover some ways to bring down those ridiculous gas prices, shall we?
1. Have Legislature Pass A Carbon Tax
Most economists will say that the most methodical way to reduce the demand for any product that’s on the market would be to make it more expensive. This is where carbon tax comes in. When it comes to gas, let’s pretend and say that it costs an extra one or two dollars to fill up your Fuel Tank .
This obviously won’t bring the prices down when you go to the pump, but it would most likely reduce the demand that we all have for gas. This, therefore, will lower wholesale prices. When it comes to the tax revenue, it would most likely be returned to the public for its own benefit.
2. Increase Total Efficiency
Lawmakers, for quite a long time, have been mainly focusing on raising vehicle efficiency standards. They’re doing their best and it seems as if it’s paid off so far – look at all the efficient cars that we’re now seeing on the road! I’m sure we’ll see a lot more as the years pass by.
3. Push Different Alternatives
When we use more biofuels and actually take the initiative to use more biofuels, this should help drastically and also help ease the demand that we all have for gasoline. There has been talk about more biofuels being used to cut the demand for gas by 20% by 2020; this is only 9 years away. The only thing that’s needed to hit these numbers is a technological breakthrough in cellulosic ethanol.
With all of the things that are happening now, I’m sure this will happen soon enough.
4. Tell Oil Companies That They Have To Make More Gas
Most people don’t know that there are ways to increase the supply of gas when some different factors are considered. Since most of the major oil companies have reached record profits, it’s not our fault we think that we’re being gypped.
Arguing gas prices is something that has become part of our human nature. There was a research director that stated the government should start requiring refiners to operate at a certain capacity or, if need be, build more refineries.
5. Invest Into Building A Gasoline Reserve
If we build a well-planned gasoline reserve, it would most likely go a long way in curing the huge and devastating jumps in gas prices whenever a refinery goes down in California or some kind of hurricane hits the Gulf Coast.
The only downfall is that building and maintaining such a big refinery would cost so much. It would most likely end up hiking the cost of gas for each one of us.
6. Just Drill More Oil
The country’s East and West Coast are known to have more gas and huge amounts of hydrocarbons – the only thing is that most of the country will oppose so much more drilling.
What do you think about all this? How do you feel about your Fuel Tank?