Gas Price Idea (1 Viewer)

[FABMAN]

THERE'S BEEN A LOT OF TALK ABOUT HAVING A DAY WHERE NOBODY BUYS FUEL TO BOYCOTT OIL COMPANIES. WITH THE BURDEN THAT WOULD PUT ON SOME PEOPLE IT PROBABLY WOULDN'T WORK. WELL HERE'S MY IDEA, LETS TAKE TWO OF THE LARGEST COMPANIES LIKE EXXON AND MOBIL OIL AND STOP BUYING FUEL FROM THEM. IF THEY'RE NOT IN YOUR AREA THEN PICK SHELL OR PHILLIPS. IF WE COULD GET A LARGE SUPPORT ON THIS IT WOULD NOT TAKE LONG BEFORE PRICES STARTED TO DROP, ANYBODY REMEMBER PRICE WARS, IT COULD HAPPEN AGAIN.

THIS IS WHAT HAPPENS WHEN YOU CAN'T SLEEP, YOUR BRAIN STARTS BOUNCING IDEAS OFF THE WALLS.

WELL, DO YOU THINK THIS COULD HAPPEN? IT'S UP TO US, OUR GOVERNMENT'S NOT GOING TO DO ANYTHING TO HELP.

 

[FINMAN]

Today was Boycott day. Atleast here in Boston,Mass.

I buy all my gas from an independent. He's usually 20 to 30 cents less per gallon if paying cash. Add 17 cents a gallon for credit.

Shell,Mobil and Sunoco are the highest in this area, even though, those same tankers deliver fuel to the independent stations.

The lowest cost I heard was 35 cents/gallon in Kuwait, then there is 6 dollars per litre in the UK.

 

[clwill]

LETS TAKE TWO OF THE LARGEST COMPANIES LIKE EXXON AND MOBIL OIL AND STOP BUYING FUEL FROM THEM.

Exxon and Mobil are the same company.

 

["Dr. Dirt"]

Exxon and Mobil are the same company.

And perfectly deserving of a great place to start! I say, one complete quarter country-wide boycott. By the end of that quarter, take a look at which other companies took notice by reducing their profit margin the most and leave them off the list by picking their competitors for next quarter's boycott. It would only work if we all banned together and stuck it out a complete quarter.

On a side note, the fallout would be all the independent operators who sell their products.

 

[Nitrohaulic]

On a side note, the fallout would be all the independent operators who sell their products.

I'm not so sure how bad that would be. A friend of mine in New Jersey has a Sunoco station. He says he sells his for .08 more than it costs him to buy (while cursing that the nearby foreign owned one still has a street price lower than his, a multi-station owner who's trying to force him out). He says the vast majority of customers use credit cards, which cost him .05. That leaves him three cents a gallon to pay a guy (New Jersey is full service by law), provide his benefits, pay for and maintain pumps, pay for ALL those special state permits on his wall, etc, not to mention all the property it sits on.

He LOSES money every day on gas. All it does is bring in business for his hot rod/repair/fabrication business and the tiny convenience store that he had to spend a fortune just to add last year.

I know one thing I've seen many times in the southeast. When a gas station loses it's beer permit, it's often not long before they close their doors. I've heard that gas alone is a loser down here, too.

IF people will still stop into the same stores to buy the same products they do now, not buying gas might even HELP the independent. Of course, how many people are going to buy gas at one store and then stop into another to buy whatever else?

I suggested something to my friend but he won't take a gamble on it. I said "Go to cash only and drop your price .03. Then you're making .05 instead of the .03 you do now after the credit card companies take their cut." He doesn't believe that people will pay cash instead of plastic to save a few cents a gallon. I told him if there was one around here that was cheaper than everyone else but, only accepted cash, we'd be buying there.

Another friend said when a biz goes to cash only, people see that as a sign that the business is strapped/in trouble and that they lost card accounts due to falling credit ratings.

 

[Nitrohaulic]

While I'm not convinced that a boycott would work, IF people were going to single one out to try this on, may I suggest the one owned by the guy who's gone around the world slandering the United States? Hugo Chavez and his Conoco?

I remember something about the problem being that it's a world market. If you buy none of one and more of others, that means those others have less to sell in other parts of the world and, the one you don't buy from will just have increased sales from those other places.

 

[mick]

..........Hugo Chavez and his Conoco?..........

chavez and venezuela are tied to Citgo.
ConocoPhillipsCompany was a merger of two USA oil companies in 2002
and is headquartered in Houston, Texas.

 

[Jenn]

I offer a 5% cash discount on credit cards (I don't own a gas station) but the credit card co takes 2% and I have to wait 3-5 days for my money, so the cash discount works for me.

 

[Paul]

A lot of people think the gas stations are the ones making all of the money and like Ron said, that is not the case. Credit card fees with gas approaching $4 is around 5 cpg and this comes directly off of the operators bottom line. East of the Rockies you do not see many gas station models with no credit cards like what you see on the West Coast with Arco (they only accept cash or debit card). The last time I was back in NJ I saw where the operators were charging 5 to 10 cents more a gallon for customers using credit cards and I don't blame them. Oh yeah, a boycott will not work because we all need gas. We need to find different sources of fuel and cut the demand from oil.

 

[Nitrohaulic]

chavez and venezuela are tied to Citgo.
ConocoPhillipsCompany was a merger of two USA oil companies in 2002
and is headquartered in Houston, Texas.

Oops! My bad. They both start with a "C." Thank you very much for correcting.

Wow! How could I make that mistake when I've read "The Flying J Story"?

 

[club]

How much profit is too much?

General Electric - 12.68%
Microsoft - 28.33%
Google - 24.89%
Yahoo - 14.89%
Caterpillar - 7.8%
IBM - 10.76%
Intel - 17.32%
Danaher (Matco) - 12.07%
Stanely (Mac) - 7.46%
Anheuser-Busch (Bud) - 12.46%
UST (U. S. Smokeless Tobacco) - 28.08%
P&G (Old Spice) - 13.96%

and Exxon-Mobile - 11.23%

 

[Eddie]

How much profit is too much?

General Electric - 12.68%
Microsoft - 28.33%
Google - 24.89%
Yahoo - 14.89%
Caterpillar - 7.8%
IBM - 10.76%
Intel - 17.32%
Danaher (Matco) - 12.07%
Stanely (Mac) - 7.46%
Anheuser-Busch (Bud) - 12.46%
UST (U. S. Smokeless Tobacco) - 28.08%
P&G (Old Spice) - 13.96%

and Exxon-Mobile - 11.23%

Sort of the same thing I've said in the past in other threads. Why don't people get so upset that Walmart or Home Depot make a profit? Hell, the oil companies are in business to make money, not to supply us with gas at cost.

And, speaking of costs.....check worldwide gas prices and then come back and tell me again about the high cost of gas here in the US. Americans, as a whole, are the most spoiled people on the planet. And, we whine a lot too.

 

["Dr. Dirt"]

How much profit is too much?

General Electric - 12.68%
Microsoft - 28.33%
Google - 24.89%
Yahoo - 14.89%
Caterpillar - 7.8%
IBM - 10.76%
Intel - 17.32%
Danaher (Matco) - 12.07%
Stanely (Mac) - 7.46%
Anheuser-Busch (Bud) - 12.46%
UST (U. S. Smokeless Tobacco) - 28.08%
P&G (Old Spice) - 13.96%

and Exxon-Mobile - 11.23%

Jim,
It's not the distributing/refining company that needs to be slapped. It's the suppliers in Venezuela, Middle East, Canada, etc. that are taking windfall returns. Do you really think 11.23% profit is building Dubai? We would have to get to them at the root of the price problem to take any semblance of control as consumers.

 

[club]

Jim,
It's not the distributing/refining company that needs to be slapped. It's the suppliers in Venezuela, Middle East, Canada, etc. that are taking windfall returns. Do you really think 11.23% profit is building Dubai? We would have to get to them at the root of the price problem to take any semblance of control as consumers.

No I don't think that Exxon's profit is building Dubai. But the thread was talking about boycotting them not Middle East oil. Your right it is the state owned oil companies (read countries) that are setting the prices and making the profits.

The "oil companies" all buy from the same countries, so boycotting one of them won't make any difference to the countries making the profits.

The other entity making a profit off the price is the states who charge sales tax on fuel sales. Since sales tax is a percentage of price charged their revenue from gas sales have tripled in the last couple of years. Based on the price I paid this morning for gas in Southern California the sales and gas tax was about $0.50 per gallon and another +/-$0.16 to the Feds. That works out to about 18%.

 

[Eddie]

This whole idea won't work and this is why:

Nowhere did I see the suggestion that anybody change their driving habits. It was only suggested that we purchase the same amount as always, but limit ourselves as to where we can buy it.

X-amount of gas is going to be purchased on a daily basis, period. If consumers boycott station A, then stations B, C, D and E will sell their fuel more quickly, and at the same price station A would have sold it.

When B, C, D, and E then run out as a result of increased sales at their pumps, station A will then be the only station with gas, and since consumers are still going to demand X-amount anyway, they'll then be forced to buy what they want from station A, who is now the only station with any gas left.

Supply and Demand folks. When Demand increases, so does price. Conversly, when Demand drops, so does price. The only thing that will drive price down in a free market is for EVERYBODY to change their driving habits and consume significantly LESS gas. Until then, the price will continue to be whatever amount people continue to be willing to pay.

 

[FABMAN]

I HAVE HAD MY BUSINESS OVER 30 YEARS AND I WILL BE THE FIRST TO SAY EVERY COMPANY HAS TO MAKE A PROFIT TO STAY IN BUSINESS AND TO GROW. I DON'T KNOW WHERE THE PERCENT FIGURES WERE FOUND BUT THE EXXON/MOBIL SHOWED A LAST QUARTER PROFIT 18 BILLION DOLLARS.THIS FIGURE IS AFTER ALL EXPENSE ARE PAID. I JUST DON'T THINK IT 'S RIGHT THAT A COMPANY CAN HAVE A MONOPOLY ON AN INDUSTRY THAT HAS SUCH A HUGE EFFECT ON OUR ECONOMY, AND I BELIEVE SOMETHING NEEDS TO CHANGE AND THE PEOPLE IT EFFECTS ARE THE ONLY ONES THAT CAN DO IT.

 

[d'kid]

I HAVE HAD MY BUSINESS OVER 30 YEARS AND I WILL BE THE FIRST TO SAY EVERY COMPANY HAS TO MAKE A PROFIT TO STAY IN BUSINESS AND TO GROW. I DON'T KNOW WHERE THE PERCENT FIGURES WERE FOUND BUT THE EXXON/MOBIL SHOWED A LAST QUARTER PROFIT 18 BILLION DOLLARS.THIS FIGURE IS AFTER ALL EXPENSE ARE PAID. I JUST DON'T THINK IT 'S RIGHT THAT A COMPANY CAN HAVE A MONOPOLY ON AN INDUSTRY THAT HAS SUCH A HUGE EFFECT ON OUR ECONOMY, AND I BELIEVE SOMETHING NEEDS TO CHANGE AND THE PEOPLE IT EFFECTS ARE THE ONLY ONES THAT CAN DO IT.

Jesse,
Exxon/Mobil sells more than just gasoline. You are leaving out the entire Lube market, Av-gas, heck, ATF. Lets not forget Mineral oil in sun tan lotion, and synthetic lubes also. yeah 18seems alot, but figure the costs at that 11.8% profit.

d'kid

 

[Alan]

Chrysler guarantees 2.99 a gallon for 3 years with new vehicle purchase.

Chrysler touts gasoline deal to win buyers - Autos - MSNBC.com

I'd sure like to know the specifics of this program...

 

[mick]

opec countries are in their heyday rite now because their oil fields are pumping oil effortlessly, just as they have been for many years. i think i read their
extracting cost less than $5/barrel.
do the math: $45 profit on $50/barrel.........$115 profit on $120/barrel.
energy rich countries are at a distinct advantage rite now

 

[Eddie]

opec countries are in their heyday rite now because their oil fields are pumping oil effortlessly, just as they have been for many years. i think i read their
extracting cost less than $5/barrel.
do the math: $45 profit on $50/barrel.........$115 profit on $120/barrel.
energy rich countries are at a distinct advantage rite now

Hey, we have oil too. Unfortunately, we also have lots and lots of NIMBYs