There’s only so much oil and refinery capacity. Not enough to go around. So rationing is in effect.
Gas is being rationed by the free market, not the government. It goes to those with government-printed rationing coupons that look like this (photo, left). Drivers with the most coupons get the gas.
Janet Yellen, Biden’s Treasury secretary, warns “consumers will be at the mercy of oil companies this summer.” She points out, “Given the global nature of these markets, it’s virtually impossible for us to insulate ourselves from shocks … that move global oil prices.” (See story here.)
Complaining won’t change things. Neither will voting for Republicans. The oil shortage was caused by years of low oil prices that drove some drillers out of business and forced others to cut back on production investments. That can’t be rectified overnight. By anyone.
Pump prices fluctuate. Always have. That’s caused by supply-and-demand imbalances. Right now oil supply and refinery capacity is constrained by the fallout from years of low (or no) oil profits. And demand is high because so many people are trying to drive and fly at the same time. The demand situation will get worse if China ends its draconian Covid-19 lockdowns and begins consuming oil again.
When gas is cheap, some people rush out and buy gas guzzlers, thinking cheap gas is here to stay. It never is, and can’t be. When oil companies lose money, as they did during the pandemic when demand was low and gas was cheap, either prices come back up or they go out of business. Then there’ll be no gas for anybody.
The rationing will end when people stop trying to buy more gas than there is. Ditching the gas guzzlers would help.