Oct 30•4 min read
When inflation has been politicized
Inflation, what inflation? There is no inflation.
In this day and age, it’s not really a surprise that there has been a heated debate over how to increase the price of gasoline. The simple fact is that when combined with increasing fuel economy standards, these costs are becoming prohibitive for many consumers. As a result, gas has become a key part of our everyday lives. Someday soon, though, we’ll all be able to drive hybrid or electric vehicles. And sooner than later, we’ll be able to buy much more expensive gasoline at the pump. This means that politicians will have to take some action in order to prevent higher prices from becoming permanent fixtures of our daily lives. But when inflation started to be politicized, you will have to accept the high inflation but take a bigger hit of your paycheck while the government probably will have no solutions for a very long time.
What is the latest galactical debate concerning fuel prices?
While there are plenty of topics that can be discussed about the truly essential nature of money, it’s no secret that the price of oil has greatly increased in the last decade. And yet, the price of oil has remained relatively the same each and every year. This means that most of the attention has been focused on what happened in the oil and gas sector in the previous year.
The problem with constant inflation
One of the most discussed topics in the debate surrounding the future of gas prices is the increasing price of oil. Currently, the price of oil is peaking at $123.7 per barrel. This increase in price can be attributed to both rising demand for oil and the recovery of global markets but with limited supply to increase the price.
That has been said, the cheap energy era may have ended, and you will have to pay a higher price to catch up of lacking higher prices in the past decades. Similar to all scenarios of the costs from food to consumer goods.
Oil and gas exploration and production
There is much more to the debate surrounding the price of gas than just the amount of oil that is being produced. As more and more people are able to access the oil and gas sector, demand for the products will increase. But because of the monopoly, the price of energy has been controlled, and people are dependent on and have to pay whatever the price will be.
Tax policy
One of the areas that have consistently challenged the notion of increasing the price of gas is tax policy. On one side, there are those who believe that increasing the tax rate on income and assets is a great way to lower overall fuel costs. On the other side, there are those who believe that both the price of oil and the market value of oil should be increased in order to generate more revenue for the government.
How to increase gasoline prices
There are a number of ways to increase the price of gas. One of the most popular ideas is to pass a fuel discrimination law. Currently, many states have such a law on the books, but it’s still a very far off possibility. Additionally, it’s not clear how or when the legislation would be enforced.
Polling that doesn’t work anymore
Finally, there is the question of polling that doesn’t work anymore. While it’s certainly possible to conduct market-research-based surveys about the current state of the market, doing so without any incentives is definitely a recipe for disaster.
Conclusion
The price of gas has increased dramatically over the last few years. At the same time, most of the attention has been focused on the price of oil. As a result, there is much room for improvement in the way that consumers and businesses are able to reduce their overall fuel costs. With the shift to a cleaner, more sustainable energy source comes an important responsibility to reduce the overall price of gas.
The future of the price of gas lies in the hands of all of us. The sooner that happens, the more time that passes for the price of gas to rise and for it to fall. With time, it will pass from the distant past into the distant future. Maybe it is time to shift into crypto?!
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