Monday 27 September 2021

Day 560 of self-isolation - Surge pricing

Surge pricing

I've been hearing a lot of ideas for handling the petrol shortage. And it is a shortage - telling me that there's plenty of petrol but not where I can buy it doesn't help.

So here's drsolly's solution to the problem. Surge pricing. A big tax rise, temporarily. The price per litre goes from £1.38 to £2.00, and the tax will go back down as soon as there's ample petrol in the stations. The additional revenue will always be useful - for example, it can go towards paying back the huge loans we made to handle the pandemic.

Drivers with half a tank of petrol will think, hmm, I could top up at £2.00 per litre, or wait a week and see what happens. Right now - there's no downside to topping up a half full tank.

And the long term solution to the HGV driver shortage is also easy. Pay them more.


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