[barnswallow]

"Can't there be a federa cap on gas prices?
Idiotic idea. This would just guarantee that there would be serious shortages. Suppose you're a gas producer and your production costs are $2/gal and the fedgov puts a cap on it at $2.50; however, China pays $3.00 what will you do? Sell to China of course"

Not so idiotic in theory. Once an "affordable" price was determined (say $2.50 for regular), then a Price Management and Distribution Bureau could be set up under the Dept. of Energy. It's job would be.
a. Make sure gas prices are not raised above the cap.
b. Establish octane standards to make sure evasion of price caps does not occur.
c. Establish a number of distribution bureaus in each state to make sure that "market information" is maintained, so that no location is running short of gasoline, thus maintaining an even supply and easing any "gas lines" and spot shortages that might otherwise occur.
For example, the state of Pennsylvania might have a bureau in the northeast (Poconos); southeast (Philly area); south central (Harrisburg, Lancaster); southwest (Pittsburgh); and northwest (Erie). Each bureau would keep track of gasoline supplies in its area to maintain an adequate supply.

[CertainInalienableRights]

Make sure gas prices are not raised above the cap

What happens when the cost of a gallon of gas exceeds the price cap?

Just to put your plan in perspective, most stations make a few pennies per gallon on gasoline sales, and the oil companies make about 9 cents per gallon. So you're looking at about a 10 cent market swing before everyone in the supply chain loses money on every gallon sold (unless, of course, you start cutting into the 50-60 cent/gallon gasoline tax).

That leaves you with two choices - raise the price cap, which defeats its purpose, or force companies to sell gasoline at a loss. Of course, the third alternative is to do nothing and create a massive gasoline black market. On the plus side, a black market would defeat the tax scheme that the various levels of government have put on gasoline.

[from occupied ga]

Not so idiotic in theory.

Totally idiotic in theory and practice - soviet style socialism at it's finest. Do you remember the Disasterous price caps on gas during the Jimmy Carter years? And the shortages and lines? Apparently not.

[webheart]

Once an "affordable" price was determined (say $2.50 for regular), then a Price Management and Distribution Bureau could be set up under the Dept. of Energy. It's job would be. a. Make sure gas prices are not raised above the cap. b. Establish octane standards to make sure evasion of price caps does not occur. c. Establish a number of distribution bureaus in each state to make sure that "market information" is maintained, so that no location is running short of gasoline, thus maintaining an even supply and easing any "gas lines" and spot shortages that might otherwise occur. For example, the state of Pennsylvania might have a bureau in the northeast (Poconos); southeast (Philly area); south central (Harrisburg, Lancaster); southwest (Pittsburgh); and northwest (Erie). Each bureau would keep track of gasoline supplies in its area to maintain an adequate supply.

What a great idea! A government agency that regulates the price and distribution of gasoline! They could also put a rationing plan in place, which is what you will need if you create a bureaucracy to handle what should be a free market.

[MichiganConservative]

And then when China and India are willing to pay $3 a gallon, all that gas that would be sold at $2.50 in the US will be sold elsewhere and there won't be any to be had here.

[rodeocowboy]

Not so idiotic in theory. Once an "affordable" price was determined (say $2.50 for regular), then a Price Management and Distribution Bureau could be set up under the Dept. of Energy. It's job would be. a. Make sure gas prices are not raised above the cap. b. Establish octane standards to make sure evasion of price caps does not occur. c. Establish a number of distribution bureaus in each state to make sure that "market information" is maintained, so that no location is running short of gasoline, thus maintaining an even supply and easing any "gas lines" and spot shortages that might otherwise occur. For example, the state of Pennsylvania might have a bureau in the northeast (Poconos); southeast (Philly area); south central (Harrisburg, Lancaster); southwest (Pittsburgh); and northwest (Erie). Each bureau would keep track of gasoline supplies in its area to maintain an adequate supply.

Horrible idea in theory and in fact! First, name me one thing that has improved with governmental intervention.
Second, think about this in global terms as oil production is a global market. We would have shortages like in the 70's. Americans are already paying less than anybody else for gasoline.

What it comes down to is that Republicans have had unprecedented control of government for years now and have failed to cut gasoline taxes and to implement drilling in ANWR. They have been spineless against envirowackos and have not protected those who would like to build refineries. They have failed to implement laws that would protect companies that would like to drill in the Gulf of Mexico (although Mexico and Cuba are going to). They have been spineless against a minority party and are now going to pay the price, as we are at the pumps, in November of 2006.