Appropriate Response to Rising Fuel Prices: Citizens Should Demand, "Raise My Prices Now!"

Fuel prices are rising. This paper examines public policy alternatives for responding to rising fuel prices. Two policy options that have popular support are to provide production subsidies and to reduce fuel taxes. These are both considered to be price-minimization policies. The author notes that price-minimization policies harm consumers and the economy in the long run, because they encourage transportation inefficiency. Reductions in fuel prices are not an appropriate method of providing mobility that is affordable to low income residents. There are other strategies that can be more successful in increasing both affordability and transportation system efficiency. Low fuel prices will increase the costs of future fuel imports, thus negatively impacting future economy. The author believes that it would be better to allow fuel prices to rise, and also undertake everything possible to improve the efficiency of transportation systems.

  • Record URL:
  • Corporate Authors:

    Victoria Transport Policy Institute

    1250 Rudlin Street
    Victoria, British Columbia  Canada  V8V 3R7
  • Authors:
    • Litman, Todd
  • Publication Date: 2005-5-2


  • English

Media Info

  • Media Type: Web
  • Features: Figures; Photos; References; Tables;
  • Pagination: 15p

Subject/Index Terms

Filing Info

  • Accession Number: 01000129
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 4 2005 2:56PM