Some Countries Are Capping Gas Prices. Here’s Why The U.S. Is Unlikely To

April 6, 2026

Market Place

Severin Borenstein, Energy Institute Faculty Director, explains on Market Place the economic consequences of gasoline price controls, highlighting how caps can lead to shortages, panic buying, and inefficiencies, while ultimately causing economic damage.

“Severin Borenstein: Everybody who was alive at the time remembers the gas lines of the 1970s. At one point, during the 1979 oil crisis, the U.S. even implemented a rationing rule, where drivers could only purchase gas on alternating days based on whether the last digit of their license plate was odd or even. It created a lot of friction. When you have those gas lines, people start having to plan their days around getting fuel. People can’t get to work. Businesses can’t deliver goods. And in the end, that causes more economic damage, says Borenstein, than having to pay for expensive gas.”

Photo: marketplace.org