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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The only reasonable way is to make functioning anti trust laws.
The price goes up to unfair level IF there is no competition. An old trick used in some countries is to have one state run oil company that runs “no profit style”. This means all the private ones have to make their profit in challenging the state run company by using better products/distribution/tech instead of just agreeing with the competition onto inflating the price. Private companies are more efficient and can still prosper, but if they cheat they lose market very quickly.
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