Gas Boycott.. a good idea? And WHO?

[Hangtime]

Got an email that suggested a gas boycott of one of the big major players. Rationale was that if we refuse to buy gas from company X that company X will be forced into price reductions.. bringing competitors pricing down.

Being something of a frothing at the mouth hysteric regarding the raping we are getting at the pumps, this, off the cuff; don't sound like sucha bad idea.

Now; this being a nation of finger pointers, and this BBS being an excellent source of financial wizards with loaded fingers, I figured I'd trot the idea out here to see if it COULD have the desired effect... and if not; what we; the analy violated consumers, could do to obtain the desired effect.

Ideas?

Thanks!

[indy007]

I gotta play Devil's Advocate here...

Which company would you boycott, and why? What about unintended consequences. What if you boycott Shell, and in response they have "no choice" but to lay off a few thousand people? What happens to the people that have shares of the company you're going to boycott as part of their retirement? Is costing them thousands worth saving $3 or $4 at the pump weekly? How are you going to get enough people to jump on the bandwagon? Who's going to fund all the advertising for the campaign (it'll cost several million dollars to spread the message coast to coast)?

Noble idea. Too many problems with it imho.

[Maverick]

Hang,

Check snopes on this. It's an old urban legend.

Seriously, think about it. Even if the entire nation boycotted a particular manufacturer / distributor for a day it wouldn't amount to anything as it is an extemely transient situation. As long as everyone still drives the same miles they will still use the same amount of gas.

If refineries are at full or near full production all it would do is allow a bit of fuel to accumulate for one day. Big fat hairy deal.

[Hangtime]

Whelp.. in forgien policy showdowns, Sanctions are the agreed upon action.. first.

This sounds to me like selecting the biggest abuser (and most profitable) and singling them out for a lil economic sanction. Intelligent investors would recognize they got their wad in the wrong hole, extract it and stick it someplace else. A few thousand job losses at Company X? How about the economic hardships the Raping Fuel Company X is foisting on us right now?

[NattyIced]

This isn't the one where you boycott a company for a day, it's one where you boycott Exxon/Mobil until they drop their prices.

Indy, I don't buy goods to support a company so that share holders can have a nice warm blanket. I buy goods based on value and how it effects me, they do the same, so why should I care if they lose thousands? Sell when it starts to drop.

[Hangtime]

Originally posted by Maverick
Hang,

Check snopes on this. It's an old urban legend.

Seriously, think about it. Even if the entire nation boycotted a particular manufacturer / distributor for a day it wouldn't amount to anything as it is an extemely transient situation. As long as everyone still drives the same miles they will still use the same amount of gas.

If refineries are at full or near full production all it would do is allow a bit of fuel to accumulate for one day. Big fat hairy deal.

Mav.. this isn't 'not buying gas for a day'.. which just deferrs the sale of fuel; the  customer has to come in to fill that tank eventually. This is a boycott of a particular company (yet to be named) PERMANANTLY.. or untill the prices come down to a level that reflects a FAIR profit.. not RAPE.

[Reschke]

The only way to truly boycott any of the fuel suppliers is to simply toss your keys in the bin and walk/commute/bike ride to work. Unfortunately that doesn't work in areas like the one I choose to live in; because the local and state leadership of the past was too short sighted in preparing for the future and establishing decent local and metro transit systems. Plus with the way populations are sprawling all over the nation and with the schedules and way things go with families and individual needs its extremely hard to carpool without driving at some point. The biggest thing is we need alternative fuels and higher mileage requirements from a government that actually enforces its rules. BUT that isn't going to happen in the United States.

[Maverick]

Ok Hang, you boycott a supplier for a month. The others can't handle the load alone so they buy from the one you are boycotting to make good on their shortfall of supply. Exactly how have you caused them to drop prices as the others will RAISE prices as their market share has gone up. Why shouldn't they, after all the availability of fuel for the ones you are buying from remains the same but you just spiked their supply big time. Think it through here.

[Hangtime]

You may be correct Reshke.. and folks strained by the gas prices are already cutting useage.. just so they can continue to make house payments, eat, etc. What's gonna occur if we don't; as a consumer group, ACT is OTHER areas of the economy will be hit.. tourisim, travel, hotel/motel, restaraunts.. entire communities based on tourisim will get pinched by the rising gas prices...

and while big oil continues to post massive profits and become stronger, small buisness takes losses. This is a shift in wealth distribution, yes?

[Hangtime]

Originally posted by Maverick
Ok Hang, you boycott a supplier for a month. The others can't handle the load alone so they buy from the one you are boycotting to make good on their shortfall of supply. Exactly how have you caused them to drop prices as the others will RAISE prices as their market share has gone up. Why shouldn't they, after all the availability of fuel for the ones you are buying from remains the same but you just spiked their supply big time. Think it through here.

That's an issue.. BUT.. if we identify a Big Oil supplier... AND it's 'off brand' retailers and hit ALL of that Big Oil Brands chain of supply with the boycott.. and not 'for a month' but UNTILL THEY SIGNIFICANTLY DROP PRICES we will have an impact, yes?

Again.. doing NOTHING but griping will make the concept just another 'point fingers, do nothing' fiasco... pretty much what we as a nation have done to this point. I'm antsy for ACTION... and I think there's a LOTTA folks like me that are not satisfied with 'won't work, why bother'.

[Maverick]

Hang, the off brand retailers buy gas from the on brand wholesale suppliers. It's not a closed system and the only ones you would be hurting are the station employees even if you could get a major national boycott going. The boycotted supplier will still get rich selling their gas to the other folks because the other folks couldn't handle a 1/3 increase in sales without a 1/3 increase in supply. (assuming 3 major petrolueum suppliers for example) They raise prices and buy from the "bad boy" supplier who makes money and can lay off employees in the retail side saving more money.

If you want to do it, go for it but don't think it's any more than a masturbatory exercise. If you want prices to drop you must cut demand. If the demand can't be made up by other markets IE China etc. then prices will drop. No cut in demand = no cut in prices. Economics dude.

[lasersailor184]

That's an issue.. BUT.. if we identify a Big Oil supplier... AND it's 'off brand' retailers and hit ALL of that Big Oil Brands chain of supply with the boycott.. and not 'for a month' but UNTILL THEY SIGNIFICANTLY DROP PRICES we will have an impact, yes?

Maverick is right.

While the demand at those particular stations goes down, the demand everywhere else goes up.  So everywhere else charges more.

[Mustaine]

the only thing that will bring down gas prices is the price per barrel of crude.

you can not effect this by boycotting a gas supplier.

OPEC decides production, and prices, and then futures investors also sway prices.

i'll bet that the big oil companies have a forumla, crude costs X then refined product costs Y.

another thing radically effecting prices is the production of ethanol. there is speculation that the ethanol production this year will not meet demands. these demands are dependant on the EPA requiring 10% ethanol in gas in certian areas.

this 10% was put into effect like 10 years ago with the promise it would clean up the air. there have been studies that show it is actually worse in many cases, like cars with newer emmision standards. they burn more gas because of the lower MPG from the ethanol, and thus put more overall pollutants into the air. IIRC it was based on cars built after 1994 or something.

here in WI when it was put into effect, the average year of the cars on the road was said to be 1985 or something, so in those cars the ethanol did reduce some emmisions.

now the corn growers and ethanol producing lobby is asking the EPA to mandate it across WI, and the US. it makes them money on their crops in the guise of helping the environment. they have a VERY powerful lobby with the democrats here in WI.

well those are the snags i see in the way of your idea Hang

[Hangtime]

What if supply from Brand X's terminals were disrupted? Would the other distributors up price?

... yah I guess they would.

And, it's not likely that other countries wouldn't quickly and happily take up any demand shortfalls resulting from a boycott here, either.

Oh, damn.

Are we completely powerless here as a consumer group? What OTHER methods would/could force the oil companies to pull their dicks outta our asses?

[Westy]

I cut up the Exxon/Mobil gas card and closed the account.  My family will not willingly buy gasoline at an Exxon/Mobil or Shell station ever again.