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
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
posted by Don at 2:16 PM
3 Comments:
Interesting thoughts Don but it's too complex. Mixing governments into the picture will never happen.
You give this supposed boycott more credit than I do. It's simply mathematical impossible for it too work.
They have no membership and they are no recording it. They are just going by hits an if you figure each person is visiting the site a couple of times a day, well that 80,000 start to be more like 30,000 spread out all over how many Provinces.
The solution is much simpler really.
People should read this.
It is obvious that there is collusion in the industry. When multiple companies move prices in lockstep, despite having different inventory levels, overhead, and distribution costs, something is amiss.
I have always thought the easiest way to force competitive pricing would be to regulate the time in which these companies can change prices. Offset from one another. Lets say that once every 36 hours and allot time slots with 4 hour differences.
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