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Old 12 Apr 2005, 01:06 am
TeGGer®
 
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Default Re: GAS PRICES - CANADA

"Michael Pardee" <michaeltnull@cybertrails.com> wrote in
news:b4ydnWt8Mvpbz8bfRVn-ug@sedona.net:

> The concept of boycotting particular gasoline retailers or wholesalers
> has never worked and will never work, because the entire market is
> responding to the laws of supply and demand. With the burgeoning of
> auto markets in China and India, good luck with controlling demand.




Even more than that: Oil companies regularly sell base stocks to each
other. If one has a glut, they will sell it on the open market.

Boycott one brand, and the others will pick up the slack and experience an
INCREASE in demand.

If anything, a boycott of the sort promulgated by the OP could result in
HIGHER prices as the non-boycotted suppliers bid up spot prices in an
attempt to fill the sudden change in demand caused by the boycott.


>
> If you want to pay less for gasoline, buy less gasoline. Trade for a
> more efficient car or drive less, or both. If you can't or won't do
> that, at least spare us the crackpot ideas.
>



And crackpot it is. Also crackpot is the notion that they are sudddenly
making a killing on gas and are "controlling" prices.

It's true that, for instance, Exxon has increased their net by some 13%
over the last complete fiscal year (from an 8% margin to 9%), but they
don't "control prices".

An interesting link, sort of relevant here:
http://www.aip.com.au/pricing/oecd.htm


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