Wednesday, March 14, 2007

Retail Gasoline Boycott

A few thoughts on the Retail Gasoline Boycott being promoted here in Toronto recently at http://www.boycottgas.ca I agree with the idea and will support it but I think a better plan is necessary in order to elevate the Boycott from a “nice try” to a “winner”.

Arbitrarily choosing a Company to boycott could set up the organizers for a law suit for all kinds of reasons and we know who has the deep pockets around here. Rotating all the companies through a schedule would not work either.

The selection could be facilitated by the municipal government that issues their business licence. As a condition of maintaining that licence all the Majors (Esso Shell etc) could be required to post a price on the first Monday of the month at which their products will be sold in the following month. No duplicate prices will be allowed and the prices may not be changed for the 30 day period. This is not price fixing or limiting, the oil companies can charge any price they like but must bear in mind that we are all going to patronize the lowest priced retailers.

The solution to the current gasoline pricing mess lies not in regulating the price but in regulating the capricious changes in price that are so annoying. The price of your home heating oil doesn’t bounce up and down 4 or 5 times a day for no reason what ever.

Independents would enjoy a guaranteed wholesale price geared to the average of the big boys and would be free to charge anything they like at the pumps.

The media would publicize the results of the Monday morning auction. Compliance couldn’t be easier, every motorist with a phone could be an inspector.

Don Hamilton