Democratic inflation fix bill is flawed

Gas hit $4.47 per gallon, diesel $5.56 per AAA, record prices

Rising inflation, especially record gas and diesel prices, is upping the pressure on the Democratic Party, but who knew they had a secret weapon in Congress that may solve all their problems; the Consumer Fuel Price Gouging Prevention Act.

GAS PRICES HIT FRESH RECORD...AGAIN

"Legislation for first House Democrats led by Congresswoman Schreier and Congresswoman Porter, introduced the consumer fuel price gouging Prevention Act for families struggling to pay higher prices at the pump. Oil and gas companies are recording record profits, with seven largest oil companies announcing buybacks that we see gas prices rise. And when the cost of oil goes, that drops, oil prices drop and price gouging needs to be stopped" said House Speaker Nancy Pelosi during her weekly press conference last week. The bill is expected to be on the floor in the coming week. 

Why didn't anyone else think of that?

READ MORE ON FOX BUSINESS BY CLICKING HERE

Ticker Security Last Change Change %
USO UNITED STATES OIL FUND L.P. 74.80 -6.88 -8.42%
BNO UNITED STS BRENT OIL FD LP UNIT 30.82 -2.52 -7.56%

Free-market economists used to believe the best way to find fair prices is to allow a free market and that would be the best way to create a price for a good that was incentive enough for the providers of that good to continue providing it at a price and for the buyer that would either encourage more consumption or naturally cure demand if prices got too high and supply got too tight. 

BIDEN ENDING MORATORIUM ON FEDERAL DRILLING LEASES WON'T HELP GAS PRICES FOR ‘OVER A YEAR’: OIL EXPERT

Pelosi is not the only one that believes that you can control inflation by controlling prices. There were reports last week that Italian president Mario Draghi and President Biden spoke about not only price caps for oil, but also windfall profits on oil companies. 

Now that the inflation problem will be solved for oil and gas why don't we just outlaw higher prices on everything?  We can just make it illegal to raise prices anywhere and everywhere. Everything that the House speaker deems to be excessive.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Phil Flynn is senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com.