If you want to understand the reasons behind the recent increase in gas prices, first get a handle on the ideas behind supply and demand, then check out this post by Lynne Kiesling
Now lets turn to an email chain letter, one which purports to be more successful than the "National Gas Out Day". Can you explain why this too is nonsense?
I know most of you usually wouldn't take the time to read this, but please take the time for this one.
Dear friends & family,
I hear we are going to hit close to $3.00 a gallon by the summer. Want gasoline prices to come down? We need to take some intelligent, united action. Phillip Hollsworth, offered this good idea: This makes MUCH MORE SENSE than the "don't buy gas on a certain day" campaign that was going around last April or May! The oil companies just laughed at that because they knew we wouldn't continue to "hurt" ourselves by refusing to buy gas. It was more of an inconvenience to us than it was a problem for them. BUT, whoever thought of this idea, has come up with a plan that can really work. Please read it and join with us!
By now you're probably thinking gasoline priced at about $1.50 is super cheap. Me too! It is currently $1.82 for regular unleaded gas in Norwich, CT. We all know that we're being screwed by the oil companies. Does everyone remember how they drove up the prices way past a dollar and got the gas prices to where they wanted them, claiming there was a shortage of oil. Well, there isn't any shortage now, and the oil is more abundant than it was 35 years ago when the
price of a gallon of gas was 29 cents!!!
Now that the oil companies and the OPEC nations have conditioned us to think that the cost of a gallon of gas is CHEAP at $1.50- $1.75, we need to take aggressive action to teach them that BUYERS control the marketplace.....not sellers. With the price of gasoline going up more each day, we consumers need to take action. The only way we are going to see the price of gas come down is if we hit someone in the pocketbook by not purchasing their gas! And we can do that WITHOUT hurting ourselves. How? Since we all rely on our cars, we can't just stop buying gas. But we CAN have an impact on gas prices if we all act together to force a price war.
Here's the idea: For the rest of this year, DON'T purchase ANY gasoline from the two biggest companies (which now are one), EXXON and MOBIL. If they are not selling any gas, they will be inclined to reduce their prices. If they reduce their prices, the other companies will have to follow suit. But to have an impact, we need to reach literally millions of Exxon and Mobil gas buyers. It's really simple to do!!