eli5: Windfall Tax. I’ve seen it come up recently as a suggestion of for oil companies, is it something that would actually help bring the cost of gas back down?

Question

eli5: Windfall Tax. I’ve seen it come up recently as a suggestion of for oil companies, is it something that would actually help bring the cost of gas back down?

In: 2

Answer 1

Gas isn’t expensive because of a scarcity of oil.

The price of gas is high because the gas companies collaborate and collude on pricing so that it stays high.