If consumers don't buy gas for one day (5/15/07), does that force big oil companies to drop gas prices?

Question

I get emails and SMS saying that if we don't buy gas on May 15th, big oil companies are going to lose billions of dollars, and they'll be force to drop gas prices for 30 cents. They say that this happened in '97. Is this true? If it is, I hope we all do it. These companies are making record profits. I'm surprised we haven't see more of an uproar from people regarding this.

Answer 1

Same urban legend has been circulating since 2002.

Won't make a minute worth of difference. What you don't buy today, you'll have to buy tomorrow.

Want to make a difference on the 15th? Get a tune up so the car you drive uses less gas; check your tire pressure.

Urban legend from a failed boycot in 2002 from one that didn't work in 97

Comments: Wrong, wrong, wrong.

1. There was no nationwide "gas out" in 1997. There was one in 1999, but it didn't cause gas prices to drop 30 cents per gallon overnight. In fact, it didn't cause them to drop at all. Despite the popularity of the email campaign, the event itself attracted scant participation and was completely ineffectual.

2. There are over 205 million Internet users in the United States, far more than the 73 million claimed.

3. If, say, a hundred million drivers refused en masse to fill up their tanks on May 15, the total of what they didn't spend could amount to as much as $3 billion. However, it doesn't follow that such a boycott would actually decrease oil companies' revenues by that amount, given that the average sales of gasoline across the entire U.S. is under $1 billion per day in the first place.

4. Whether the total impact was a half-billion, 3 billion, or 10 billion dollars, the sales missed due to a one-day consumer boycott wouldn't hurt the oil companies one bit. Think about it. Every single American who doesn't buy gas on Tuesday is still going to have to fill up their tank on Wednesday, Thursday, or Friday, making up for Tuesday's losses. Sales for the whole week would be normal, or very close to it.

A meaningful boycott would entail participants actually consuming less fuel -- and doing so in a sustained, disciplined fashion over a defined period of time -- not just choosing to wait a day or two before filling up as usual.

Source(s):

http://urbanlegends.about.com/od/governm...

Answer 2

If you believe that the oil companies are gouging us, then here is a perfect opportunity for them to do so even more.

A smart oil executive will realize that if no one is buying gas on the 15th, then those who would ordinarily fill up on the 15th will either do so on the 14th, or maybe stretch it to the 16th.

So what if on the 16th, prices suddenly go up a dime a gallon? Those who were stretching to make it to the 16th are now forced to pay an even higher price.

Say 10 million people who would normally fill up on the 15th decide not to do so. Let's say 5 million of those decide they can wait until the 16th. Say average fill up is 15 gallons. So on the 16th, if the oil companies all go in cahoots with one another and raise prices a dime a gallon, they'd make an extra $7,500,000 off of this stupid protest.

That's what I'd do if I were an evil oil executive. If I can figure it out, I'm sure the smart executives can too. Maybe they are actually the ones promoting this worthless protest to gouge us even more??? And the best part is, they get the useful idiots who think this protest is a good idea to promote it for them.

Wow! What a conspiracy!

Answer 3

Id be willing to, but in the long run, do you think it would really have any effect? I mean, here in America, we are greedy when it comes to gas...everyone wants tto drive their own cars. So, we got 250 million people, some who buy gas on Mondays, some on Tuesdays and some on Fridays. If everyone boycotts for three days, then on the fourth, the only thing youre gonna have is HUGE LINES at every gas station in town! Everyone will still buy the same amount of gas, so in the long run, the companies wont feel a thing - all those Monday, Tuesday and Friday shoppers just bought gas on Thursday instead! Know what I mean?!?!?

Answer 4

IF "smif"......There's NO way that many people are going to be on the same page about anything. And millions of them won't even GET the memo. If a person's gas tank is sitting on empty, he's gonna buy gas so he can get to work. My boss wouldn't take it too kindly if one our engineers couldn't get to a property to fix a problem because of a gas boycott. And if everybody who needed it filled up the night before, it would defeat the boycott purpose. When the day comes that most of the cars on the road burn something OTHER than gasoline we can reduce our need for it.

If gasoline becomes obsolete the gas COMPANIES will become obsolete.....kinda like the buggy manufacturers when cars were developed. And if the gasoline companies had ANY BRAINS at all, they'd be working their tail ends off trying to come up with alternatives THEY can get into if they want to save their business.

Answer 5

It wouldn't be the not buying of gas but the not driving for several days that would hurt them. Beside organized boycotts never work.

For those whining about gas prices all the time we live in a free market society. Unless the oil companies or gas stations are truly colluding in setting the price the market will dictate.

Answer 6

nope, this is just an urban myth. If you postpone filling your close-to-empty car on the 15th, you still have to fill it on the 16th. this means that they will get your money one way or another. They dont really care if they have to wait and extra few hours to get the money that they INEVITABLY will be getting.

This tactic would ONLY work if the gas boycott went on for weeks or months at a time. That would cripple them nominally, and force them to alter their supply and demand as per the laws of microeconomics

Answer 7

How can the oil company lose money? You are still doing the same amount of driving. Why should it matter what day you will buy the gas? You will still buy the same amount.

Answer 8

back in the 1979's we had a gas boycott and fr allthise who thinf it won't work do a 3 day boycott buy no gas t all and see how it does work. if the whole nation is with us on this it makes a veryloud statement. the key is everyone has to step up to the challenge and do this regardless of the inconvinouce. here is one person that is going to do yhis and i hope all join in

Answer 9

I don't buy gas 5 days out of the week and the only one who seems to be broke is me.

Answer 10

i doubt this would drop gas prices down i mean we are going to need it the next day..so we are going to demand the supply the day after or some people will fill up on the 14th and make them their money than, so if i need gas that day i will pump it....