How would taxing oil companies make fuel cheaper?

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There is a lot of talk about taxing oil companies a windfall tax because of how much money they have made recently.

How does this affect the price of fuel in a positive way (i.e. make it go down in price)

Surely an oil company that gets a sudden tax bill is going to put the price of fuel up to offset what they are paying in tax?

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4 Answers

Anonymous 0 Comments

Increase the costs on the producer, and they’re just going to pass that cost off on the consumer, raising prices.

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