I understand the concept of supply and demand, but shouldn't an increase in the volume of sales allow petrol companies to sell petrol at cheaper prices when demand is higher - like long weekends? Why is it that prices can go up across the board every-single-time we have a long weekend? Is there anything wrong with that? Is it price fixing or simply effective competition?
2006-06-26 20:29:26 · 15 answers · asked by Anonymous in Cars & Transportation ➔ Commuting
It's not price fixing - this is more of a collusion between petrol stations thing, not a regular price rise thing.
Prices go up on long weekends because petrol stations know that many people will be going away, and will need to fill up on petrol and will therefore be if not willing, then requiring to buy petrol. It's an unfortunate thing, and the petrol stations will tell you it's because they have to pay their staff penalty rates for working on public holidays etc, but the reality is, it's greedy people rubbing their hands together when they can see more $$$.
2006-06-27 21:17:14 · answer #1 · answered by Bratfeatures 5 · 1⤊ 1⤋
On a long weekend a lot of people/families travel as they have an extra day to spend at there destination! In certain tourist destinations the increase of cars going through the town is increased by 100% so the amount of petrol fills increase compared to the same time on a "usual" weekend!
Therefore Petrol station owners increase the price so they can increase their takings/profits. Some people say it is better for them to take money off of tourists rather then the locals!!??
2006-06-30 06:45:58 · answer #2 · answered by dags042 3 · 0⤊ 0⤋
Good observation. Petrol or gasoline prices aren't controlled by volume sales. They're controlled by reserve supplies. Higher usage lowers the supply requiring more refinement. Oil companies tend to keep these reserves low when they want to keep prices up. Also, don't forget oil is not an infinite resource. The more we use, the faster we will run out. So, in a way, you are being penalized. California has always had some of the higher gas prices in the US because so many people drive cars. We are being penalized for the higher oil usage.
2006-06-27 03:39:37 · answer #3 · answered by Dale P 6 · 0⤊ 0⤋
It's exactly as some of the others have said, they know you will want it more on the weekend so it's always worse on weekends and even worse again on long weekends and holiday times such as easter. I suspect it's even up on school holidays and so on because people fill up more to travel. It sux totally and I hate it. If you are really trying to save money watch your local petrol stations closely. Most are cheapest on Tues later morning/early arvo. Often it can be a fair bit cheaper. I fill up on Tuesdays even if I have 3/4 of a tank already. Might as well fill up to the top when it is cheaper even if I don't need much. Unfortunately I use most of my petrol between Tue-Fri and so inevitably end up having to fill up again around the Thur arvo mark which is getting more expensive again. I wish we could all boycott it and not buy petrol but sadly thats not possible and they know that. Unfair unfair unfair especially for lower income earners or no income earners like me who are stay at home mums. Im now going through $50 per week just to get my son to school and back.
2006-07-02 03:09:57 · answer #4 · answered by T 3 · 0⤊ 0⤋
If when demand is higher a company sells a commodity for cheaper, there is more likely to be a shortage in that commodity. Raising prices over long weekends makes sure that only those who can truly afford it drive, or people cut the distance they plan to drive. Otherwise, too many people would buy gas, and it would run out. Raising prices ensures a continuous supply.
2006-06-27 15:28:07 · answer #5 · answered by Omar Y. 4 · 0⤊ 0⤋
Demand on oil means the price goes up unlike most items that get a demand and the price goes down.
We have limited supply and limited ability to remove it from the ground only at so fast of a speed.
3 day weekend, holiday weekend etc means more people will be out traveling, driving instead of sitting in office buildings. this in turn means more gas is used putting a strain on the system to produce more when it can't. In turn causing the price to go up to slow the demand so they can keep up with the production.
2006-06-27 03:39:34 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Supply and demand. More demand equals higher prices, not lower. If people want it more they're willing to pay more for it, so the people who sell it can charge more for it. The petrol companies make such an insanely large profit anyway that they probably could care less what they're paying for it, just what's the most they can charge for it before enough people stop buying it from them that they start losing money.
2006-06-30 01:53:01 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Yes ur right - supply and demand. People drive further on weekends and of course they will fill up the tank. The Govt so far hasn't put a stop to over charging and it needs to address this problem. Buy your petrol before the weekend instead.
2006-06-29 05:25:55 · answer #8 · answered by Windsong 3 · 0⤊ 0⤋
Even though its a overdemanded thing
It won't be cheaper because of the competition
Companies will like to profit from it
People just got to pay that price for the petrol
2006-07-02 07:59:30 · answer #9 · answered by spyblitz 7 · 0⤊ 0⤋
Because the OIL companies are not satified with their multi BILLION dollar profits and enjoy screwing the motorist to the wall
2006-06-27 23:42:41 · answer #10 · answered by Guru BoB 3 · 0⤊ 0⤋