Policies needed against petroleum price spikes

Motorists are still reeling from the oil price spike that occurred after the Sept. 14, 2019 attack on a Saudi oil facility. Even as world leaders debate whether Iran was responsible, there is concern about the impact on inflation and perhaps on the economy. Fortunately, tensions have eased somewhat causing pump prices to fall, but this whole incident should worry us enough to consider policy changes needed to protect consumer interests and ensure energy security.

Before we get to our recommendations, we should rule out reviving the regulation of fuel prices. The defunct Oil Price Stabilization Fund was a mistake, and we still prefer market forces in influencing fuel costs. Having said so, there is the problem of price spikes that we experienced again recently.