Post #2747959

Honestly this is just basic economics. If theres less supply but the demand stays the same the prices will continue rising until the demand matches the supply. If you for example say "I will have to buy gas to commute no matter what to make it to work" and many people use fuel like that it will shorten supply and make the prices go higher until people use up less fuel. Ofc I know oil is used for more than just fuel for cars to commute but this is just an illustration. Thats also why subsidizing the prices directly is highly ineffective as it doesn't actually mean there is more supply on the market and no incentive to save money. If people use a more limited supply of oil as if it was much as there is normally this will spike the prices again until supply and demand match again. Most likely direct subsidies go directly to the oil companies. And if many countries do this it turns into a bidding contest basically where every (except the oil companies that still supply) lose