What would be the impact of setting a minimum price for gas economically?
Say set it at $4.50 as Thomas Friedman suggested to assure the development of alternative energy sources, increases in fuel efficient cars, and use the tax benefits to invest in alternate energy. The extra for alternate energy assumes there could be a difference, with a lower price of gas + variable tax = $4.50.
What's the incentive for the service station to shop around for lower gas, and the suppliers just set the wholesale price at $4.40, allow the gas station to make 10 cents. I would guess a percentage of the difference would need to be given to the station so they shop for the best price. The higher the difference, the higher their profit.
On the economic side, with the price of gas being more than halved that is helping households, my guess is a couple of hundred every month. I am surprised this has not had any positive effect yet, but I am sure it will in time. The only negative is more usage of gas due to lower prices.
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