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Old 04-27-2001, 09:16 AM   #1
AliasAngel
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Exclamation New Idea to bring GAS PRICES DOWN!!!

Let's give this a shot guys~

THE FOLLOWING WAS SENT BY AN ECONOMIST WITHIN THE FUEL INDUSTRY. ANOTHER ECONOMICS PROFESSOR AT CAL REITERATED THE SAME LAST WEEK. I THINK IT IS WORTH TRYING.

I got this from a reliable source & the website listed is legit. We Heard today from a man who is very savvy about the economy, namely, Clark Howard, and he says that the gas prices are going to start going up Again and will be high this summer-$2.00 and up. We need to do whatever we can, and do it NOW!!!!

This makes more sense than the don't buy gas on a certain day routine that was going around last year re: Gasoline Prices. Whoever started this has a good point. By now, you're probably thinking gasoline priced at about $1.49 is cheap. Me too, as it is now $1.58 for regular unleaded!


Now that the oil companies and the OPEC nations have conditioned us to think that the cost of a gallon of gas is CHEAP at less than $1.50, we need to try an aggressive response. With the price of gasoline going up more each day, we consumers need to take ACTION! The only way we are going to see the price of gas come down is if we don't buy it. But, (as the gas companies know full well, and are counting on), that's not really a practical option since we all have come to rely on our cars. But we CAN have an impact on gas prices if we all act together.

Here's the idea: For the rest of this year, don't purchase gasoline from the two biggest companies (which now are one), namely EXXON and MOBIL. You see, if they are not selling, they should be inclined, (i.e., "forced"), to reduce their prices. And, because of their size, and hence market share, if they reduce their prices the other companies will too. (They would HAVE no choice!). Isn't that a "juicy" prospect? But to have an impact, we need to reach literally millions of users. But it's do-able!

PLEASE HOLD OUT UNTIL THEY LOWER

THEIR PRICES TO BELOW $1.28 - $1.29 AND KEEP THEM DOWN. THIS CAN REALLY WORK!

WE NEED TO HAVE ANOTHER GAS-OUT ON JUNE 1ST

If you're not outraged, you're not paying attention!

Respectfully,

Richard Root

[This message has been edited by AliasAngel (edited April 27, 2001).]
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Old 04-27-2001, 09:25 AM   #2
North Ursalia
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<FONT face="Comic Sans MS">...and Microsoft will dontate $1000 to cancer research if you just forward this message on to 10 people. It's spam, designed to get lots and lots of email addresses, nothing more. There is no supply/demand game being played by gas stations. They charge to cover the costs of what they are charged, and does anyone really think some Arab and his camel out at the oil fields really cares if you don't buy gas for a day... ??

Brian

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Old 04-27-2001, 09:40 AM   #3
KITTbri
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I posted this on a mailing list i am on that was proposing the same EXACT thing...

Alright, one thing the general public does not realize is how they have been duped by the auto industry. How many of you grew up in a family with a station wagon, I had three different ones in my family growing up. My first car was a ’78 Pontiac Bonneville wagon. Now, there are no domestic station wagons (besides the Taurus wagon). Why? Because the domestic industry realized that the safety, emissions, and production costs were going to be too high and too stringent on wagons as they fall under passenger car standards. SUVs are classified as trucks and therefor are not subject to the same guidelines. Foreign manufacturers already had to follow similar guidelines at home and so kept making wagons. Domestic manufacturers then decided to make a concerted push on SUVs to increase sales and profit. Just look at the proliferation of the market in the last 15 years. Only recently have SUVs been subject to more safety and economy guidelines. Hence the rise of car-based, “mini-utes”, not to mention lower production cost, versatility and product line depth. They can now make mini-utes that are “green” and market them as better than the large SUVs. It is all marketing. And we as a consumer believe what the ads say and the magazines print. Who pays for the space in car magazines? Certainly not your $24.99/yr. subscription. Why then wouldn’t they praise SUVs for their great features while downplaying the safety and economy concerns of them?
Also, boycotting the gas station won’t lower gas prices. The refiners do not determine barrel price. That is done by OPEC and its member producers, Iraq, Iran, Mexico, Venezuela, etc…reducing production below demand, these are the people to hit to lower pump prices. The barrel cost increase is passed from the refiner to wholesaler to the owner/operator and finally to the consumer. All so each step in the distribution and refining can keep the same profit margins. This is a larger political battle than it is a simple economic battle.
Just my opinion, I could be grossly wrong and/or inaccurate.

-Brian-
"tired of all the same old BS"

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Old 04-27-2001, 11:14 AM   #4
pleiades
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Have a Nice Day?

I say let's keep buying it and keep bitching at the same time! That's what I do!
Seriously, I paid $1.80 for premium yesterday. That is the most I have EVER paid for gas. It's really beging to be depressing.
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Old 04-28-2001, 01:14 AM   #5
jhuang76
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Here is Economics 101 (no "well" known economist needed). If supply stays the same and the curve is elastic, AND demand goes up, price AND quantity will increase!

Really basic economic idea - demand goes up so prices must go up. AND, this is assuming perfect competition! The only difference in a monopoly (from a basic economics POV) is that prices will go up MUCH higher.

So, back to the original statement. IF PEOPLE REALLY WANTED TO LOWER FUEL COSTS, then use less fuel. Simple. A nation wide drop in fuel demand WILL lower prices GUARANTEED!!!

BTW, comparing price increase for gasoline starting from 1994 to now results in only an increase of around 5.5% annually! Here is my math. When I moved to Georgia in the summer of 1994, premium gas was around $1.25 / gallon (compared to CT which had it for $1.40). Now, prices are around $1.65, so I'll assum $1.80 max. So, taking compounding into account, the average increase per year for gasoline is:

(1.85/1.25)^(1/7) - 1 = 5.35% annual increase.

Again, this is a tad bit high compared to CPI or PPI but nothing that outrageous (heck, look at beanie babies or college tuitions!!!) OR, realistically, look at housing cost increases or cost of living increases in the Atlanta region in the last decade!

Understandably, we had a HUGE price increase in the last two years BUT, realize that 2 years ago, we had the CHEAPEST gasoline price EVER in American History! If you will, current prices are just a BALANCING of what occurred 2 years ago!

Okay, sorry for the long rant!
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Old 04-28-2001, 11:16 PM   #6
Tkacik
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You tell em' Joseph
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