Um, the US has the lowest gas prices in the world because our governments
(Fed, State, Local) actually have reasonable taxes on it. In Japan, 95% of
the cost of a gallon of gas is tax. There are similar numbers in Europe and
most other countries. The US has the higest demand for gasoline in the world.
Standard economics says that where there is higher demand, the supply must
match or the prices will increase/decrease depending on the supply. If there
is more gas to go around, it gets cheaper. If there is less, it gets more
expensive.
Oil "cartels" (there really aren't any truly powerful ones anymore) try to
increase the price by reducing the supply. However, independents step in and
undercut the cartels and they are shafted. This is why they haven't been
successful of late. I'm afraid the rest of the country is suffering right now
because of California. We've had 2 refineries blow up on us here recently.
Chevron was forced to raise their prices due to the reduction of supply (Cal.
gas can only be used in California, and we can't 'import' other gas because of
our smog laws) and all the other companies are profit taking: increasing their
prices to just under Chevron's because they can and we can't say crap about
it, unless there is some kind of boycott.
A boycott attempts to force demand down so the supply 'increases' by
comparison and gas prices should drop. However, the proposed "one day"
boycott is silly. If you want to put a dent in the oil companies you do it
over a longer period. They have way too much liquid capital (no pun intended)
for a single day boycott to have an effect. They know you'll be back the next
day.
A successful boycott would be everyone in the country trying to use 5
gallons of gas less in a month, or driving 100 miles less per month. This
would drive the oil companies nuts (do they increase the price to try and make
up the difference and risk further wrath, or give in an cut prices to curtail
the boycott? They'd waffle on it for a while). After 2 to 3 months of this
they'd get the message and keep the prices down (because their profits for the
quarter would look like crap). The problem is, we American's are weak people
and like to do our "four-wheelin", "drag-racin", "sight seeing", and "pavement
persuit". We have these neat toys we call "vehicles" and want to use them.
So until we can all tighten our belts, we'll all have to suffer from the price
fixing the oil companies do.
Shaun H.
---original message---
Date: Wed, 31 Mar 1999 22:00:10 -0600
From: John Neff <jndneff@texas.net>
Subject: Re: DML: Boycott Gas April 30th]
Damn good thing none of us live in Europe or any other part of the world
where gas is very commonly seen for $5.00 a gallon. Yeah, you read it right.
I'm not complaining about a thing on gas prices. Would I like them lower,
you bet, but I'm still going to buy it when it goes higher yet, and no I
will not complain about it either. I bought an uneconomical truck and knew
it when I did. We have been in Gasoline Utopia for the last two years and
prices are so low that oil companies are shutting down due to bankruptcy.
It's about time the demand for oil went back up, maybe it will save a few
jobs for other hard working Americans.
Just my .02, and flame suit on!
Soap box is now back in the closet where it belongs.
John
98 Dakota (Big Blue Gas Hog) CC 4X4 Sport with 5.2L of gas guzzling power
with Mopar headers attached to a low efficiency automatic transmission
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