The price of Oil and Gas are determined by a factor of demand and supply. When that supply is restricted, either naturally due to unforseen calamities, or artificially through cartels, how much can the government do try and contain the fallout - Increased costs of oil and gas for consumers?

These are political answers to the problems, and it may be worthwhile to see just how it can happen.

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Tax Holidays on Gas

The government levies a tax on each gallon of fuel. This causes the prices to go up. It is possible to slightly limit the price increase by granting a Tax Holiday on Gas during peak demand to ease the burden on the consumer. The downside is, that the government needs this money for other infrastructural purposes.

Taxing the Oil Companies, with a Windfall Profit Tax

This does not directly affect the oil prices, but it does make it easier for the government to make up for the loss incurred by granting a Tax Holida.

A Windfall Profit Tax on Gas would tax the Oil companies upto 50% beyond a certain profit figure.

This measure can even be used without Tax Holidays. It can be used to directly help citizens pay their energy bills.

Monitor Gas Prices to Prevent Manipulation

Due to reasons that effect the supply of Oil and Gas, the prices of thse fuel commodities can be artificially increased to serve vested interests. The government can take extra measures to crack down on these manipulated factors.

Limit the Political Influence of Oil Companies

Due to their huge financial resources, Oil companies do have a certain amount of Influence on the government through various channels. In times of crisis, the government can take steps to limit this influence in order to stabilize prices.

Current presidential candidates like McCain, Clinton, and Obama are promising combintations of these different strategies to help woo the public, and no doubt, actually reduce Gas Prices.