Most economist believe the gas tax holiday will do nothing to help lower the price of gas. Any relief in gas prices will be short-lived as lower prices will cause consumers to consume more and that will drive the price back up.
Right now refiners are only running at 80% of capacity, so there is plenty of gasoline on the market. The higher prices are forcing consumers to consume less keeping the price of gasoline lower than it otherwise would be with crude at $124. When refiners get closer to 97-98% capacity, we will see prices sky-rocket. However, higher prices look unlikely unless crude does hit $150-200 as Goldman-Sachs is predicting.
Now if the US had these gasoline taxes, tax relief would matter....
No comments:
Post a Comment