As energy shock continues, will more countries turn to price caps on gas?
As energy shock continues, will more countries turn to price caps on gas?
- April 23, 2026
- Ami Glazer, economics, weighs in on Marketplace
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According to economic theory, price caps can cause big problems and lead to supply shortages. On the consumer side, “there’s more that people want to buy than is available,” said Amihai Glazer, professor emeritus at the University of California, Irvine. And for producers, price caps might make a product not worth selling at all. “If the price is set very low, then it doesn’t even cover my cost,” Glazer said. “So, I would lose money by selling some of the goods.”
Listen in, courtesy of Marketplace.
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