Why can't we boycott gas stations to make effective changes to their predatory pricing practices?

Question

Here in Ontario, Canada, there's been an increase of 20 cents per liter because of March break (also because the oil execs need to buy a new private jet because their old one is almost a year old.) The idea keeps popping up about a boycott of gas stations to break this 'they-have-us-at-their-mercy' rule. But inevitably some economists and/or oil spokesperson comes out and says it won't work be because of the theory of supply and demand. Well why can't we trash the supply and demand theory??? Let's call it the Be-As-One theory. If we, the consumers, all act as one and boycott a certain brand of gas station for a month (or a year) what would happen? That particular brand would lose money and would eventually close. The other brand would increase their prices in the short term to compensate for increased demand (gouging like they do now) but when they see that our consumer protest against predatory pricing is able to shut down a brand then they may want to think twice about it.

Answer 1

Because what you don't buy on one corner, you have to buy on another. Supply and demand.

BTW, I haven't checked, but did Canada also switch to the more expensive "Summer" blend gasoline that results in low ozone emissions? Odds are that's why your prices went up; and it's nice to see everyone worried about global warming until they realize it is hitting their pocket.

Answer 2

All your saying is fine but look beyond to the Heart of the Matter the Actual source IE: The Middle East places like Saudi Arabia South America Venezuela Where The Few Control The Market for the World. Instead of wasting time boycotting those at the very end of the food chain Lets Work harder at inventing and using other fuels. I dare say if we could power a vehicle on Water or sunlight that would operate like those using gas and we could stop using Gas We could Eliminate Most if not all the Global Terrorism. Have a Cleaner environment and those Arabs States that Have Contributed Next to Nothing in the Big Scheme of things would in time Wither away and be back to Desert Like they were around the Early 1900's & Late 1800's.

Answer 3

In the US, the gas stations make very little profit on the sale of gas. Many states have regulations that dictate how much above cost the gas stations must price their gas. Gas stations with the convenience of "pay at the pump" credit card sales often make next to nothing on those sales, as they are paying the credit card companies a fee for each transaction. The problem here generally doesn't fall to the gas stations, but the distributors and oil companies. I would assume they would still find ways to move their product, so boycotting gas stations would do very little.

Answer 4

The supply/demand theory is at work here.

The problem that you will see is that while you may buy from a specific company, that company may purchase their reserves from multiple underlying companies, who then purchase supplies from multiple production countries and companies. By reducing the useage of one specific company, you are not reducing the amount purchased at the underlying levels.

When you then look at where the major costs of oil and gas come in, you will see that the initial sale of the oil at the per barrel price is the biggest chunk, and you will end up paying that same price no matter which gas station you go to.

Answer 5

I don't think it would work - So one company goes out of business - that's more money coming in for the remaining gas companies. If they keep the prices high, they are making more money from the consumers who used to go to the closed gas station.
They only way to get gas prices to go down is to lessen our dependence on it. We need to find a better source of energy.

Answer 6

Thats nothing new
Its been tried here in the States at least once a year with little if no effect since the gas crunch in the mid 70's

someone somewhere is always willing to cross the picket line, ignore the ban

Answer 7

You can't fight City Hall, as they say. The higher-ups are the ones in charge of the prices. Government at its best!

Answer 8

This sounds like a great idea. I don't know why it would not work. You could buy gas from other places so its not as if you'd be forced to buy from them.

Answer 9

because most people do not want to use public transportation, and b/c cab & truck drivers will still buy gas.

Answer 10

We can, we just have to realize that would mean that we would have to walk , bus, or cycle everywhere we go instead. Are we as a society that lazy? I say no!