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if governments can regulate how much gas stations charge why don't they regulate how much producers charge?

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  • Anonymous
    1 decade ago
    Favorite Answer

    Because governments cannot unilaterally enact laws outside their jurisdiction. In the absence of an international agreement, it is simply not possible to do that. Especially because exporting countries have no incentive to do that. Having said that, there is in the story more than just producers and gas stations. In between, there are thick layers of intermediaries who add most of the costs. It is even more critical, since some of these intermediaries do not serve any economic role and are, as opposed to producers, are in the reach of governments.

    For example, a big chunck of the futures market serve only for speculation, driving up prices of oil for no fundamental reason. I don't know why these markets are not regulated, because of laxism from the part of government or because of lobbying.

  • ed
    Lv 7
    1 decade ago

    You mean Price Controls?

    I remember Price Controls, during WW II.

    There wasn't much to control though. It either didn't exist or was rationed. The average person got 5 gallons of gas per week.

    And, I can assure you that government price inspectors was a SHAM. (A whole nuther subject)

    Wait. When Obama get's to Washington, he, Pelosi, and Maxine waters will own the oil companies.

    Then gas might be 17 cents like Venezuela. Ya think?

  • Anonymous
    1 decade ago

    Cause they(bush, cheney, and lobbyist for big oil) have financial stakes hanging on oil prices. they act like their outrage, but look closer at their businesses, stocks, mutuals funds, and how they got thier millions. it because of oil.

  • 1 decade ago

    because most of our oil is imported from foreign producers

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