to vote for favorites. Only 6 votes needed to get on the list.Heartless Earth Killing Bastards
The basic premise of most bitching and complaining about gas prices is that oil companies make huge (gouging, ridiculous, overpriced) profits selling gasoline. People seem to feel that if the oil companies were not such greedy heartless earth killing bastards they could stand to make a little less and give us reasonable priced gasoline.
Assuming those are the facts of course reduces the whole price system down to Bob the oil executive coming in on Monday and calling in his colleague John and explaining that he had an epiphany on the weekend. “You know what would be better than making 10 cents on every litre we sell? Making 20 cents!”. John agrees this is brilliant and they race for the red phone on the desk that will change prices throughout the land. If only we had some way to show Bob and John that we think this is bullshit and we are not going to stand for it anymore.
Bring on the email revolution
If we would all just ban together and do as outlined in the following email we are sure to see gasoline prices plumet. We have all received emails like this. The plan varies, the promise is always the same: organized consumer revolt resulting in lowered prices. There are three fundamental failures in these plans.
Psst! Pass it on
Truthfully we do not need to move on to problem two because number one is entirely insurmountable. It is this: you can not motivate nor coordinate the actions of millions of people by forwarding an email to 10 of your friends. You can annoy your 10 friends, but that is all you will accomplish.
This is Stupid
Maybe it is a fervent faith in democracy and the power of a single vote, but many a person moves beyond problem one and still thinks “But if only people would do something”. This brings us to problem two. These plans are silly on a base level. They run counter to the basic laws of supply and demand. The plan might as well be: Everyone lie down on the ground and throw a tantrum about gas prices on Friday. The effect would be the same.
How low can you go
This brings us to the last issue. It is this: prices are as low as they are going to get. This contradicts much ingrained belief in price gouging and the inherent evils of oil companies. It is never the less true. Selling gasoline is one of the most price competitive industries there is. Huge amounts of petroleum is pumped into automobiles every day. Competition for those dollars is fierce. The commodity, from the consumer point of view, is basically the same everywhere. The producers quality, production methods, additives, environmental record largely mean nothing. If the consumer can save a penny going across the street they will do exactly that. You do not need any experience in economics to understand that Company A generates a big advantage if they can set their price a couple of cents below their competitors. Company B must follow suite. The result is the lowest possible price that will sustain the business.
It is more interesting to believe in a giant global conspiracy aimed to screw the little guy out of his cash. The reality is that capatilism works, at least in the sense that competition and consumer pressure results in the best possible result for the consumer. In this case that means the lowest price.
What can be done
The solution is simple, and not very popular. Reduce the impact petroleum prices have on you by using less of it. Buy a more fuel efficient car. Move closer to work. Ride a bike. Take the bus. Honestly, that is all that you can do to head of the coming oil crisis. All the foot stomping and hand wringing in the world is not going to make a difference.
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