Can the Government control fuel prices?

[peanut2008]

That was when Reagan raised the federal use tax to$550.00 per year on trucks grossing 60,000 pounds or more and put a federal excize tax on every new truck,parts and tire that we buy.Can someone explain to me why the trucking industry pays more tax than any other industry.We now have to even pay every year for our DOT numbers they used to be free.As far as average income in 1980 being $17,000.00 and $49000.00 now that $17,000.00 then would buy a lot more than $49,000.00 will now.The inflation rate Energy has tripled in the past eight years and most food has doubled.Unemployment at 5 percent they only count people collecting unemployment insurance,if they count people not on unemployment the rate would most likely double.In the past 8 years my insurance cost has quadrupeled,but the coverage has stayed the same and no I haven`t had any losses or tickets not 1 in the past 34 years.

[BrainHurtz]

The price you pay for Diesel or Gas is just free money into the oil companies pockets.

Here's the problem:

Diesel and Gas prices are based on the "open market" price per barrel.

When the dollar weakens hedge funds pump money into commodities to fight inflation which cranks up the price.

The majority of refineries are owned by the oil companies that control everything from the well head to the pump. They do not pay open market price for oil. If you notice lately when a batch of oil futures expire the price plumets becaus nobody is actually taking ownership of oil at the price listed as "open market"

However the issue becomes the fact that because the fuel price does affect what it costs to ship goods, the core inflation metrics do see it, then hedge funds put EVEN more money into oil futures cranking up the price even higher.

Where's all that money going? Into the likes of Exxon, Shell, BP, etc which have all had record profits of late.

The only sure way to fix the problem? Stop deficit spending. Every dollar the federal reserve prints is a tax on the entire population. 1% inflation is a flat tax on every dollar, everybody has ever made (it devalues your savings). If the US government doesn't return to a balanced budget then the fuel price will continue to skyrocket. If it does balance it then the fuel price will drop back to somewhere on the order of $50/barrel.

[peanut2008]

Wasn`t it Reagan that said deficiets don`t matter?I have always thought red ink was a bad thing.I know that if I spend more than I take in it catches up really fast and going in debt to balance the books never works either.Sooner or later the debt in this country will need to be paid even with a balanced budget the intrest on ten trillion dollars will be more than is paid on all social programs that the rich hate so much.I wonder can a country file for bankruptcy protection?