On the Bottom Half

Stupid Ideas to Reduce Fuel Prices

*rant* I've been hit lately with a number of stupid ideas presented by people hoping to reduce their fuel bills. Besides the utter and obvious ridiculousness of having a "let's not buy fuel day", another one that has been passed my way is, and I'm quoting:

"Here's the idea: For the rest of this year, DON'T purchase ANY gasoline from the two biggest companies, ESSO and Shell."

To which I reply: "No, let's buy fuel from all those small, family run operations that presumably have their own condensate pipelines and refineries in their back rooms." Yes, that will definitely give the LARGEST OIL COMPANY IN THE WORLD (ExxonMobil), the second largest corporation in the world (ExxonMobil), and THE MOST PROFITABLE corporation in the world (ExxonMobil), pause for thought. It will also give the second largest oil company in the world (Shell), the THIRD LARGEST corporation in the world (Shell), and the second most profitable corporation in the world (Shell) that same pause. After all, they make all their money from you buying their gasoline... NOT.

Just where, exactly, do these people think non-ExxonMobil and non-Shell branded fuel stations buy their fuel from? Well, besides from ExxonMobil and Shell? Probably from that third most evil and trampling global death walker - BP, you guessed it, the THIRD LARGEST OIL COMPANY IN THE WORLD and FOURTH MOST PROFITABLE CORPORATION IN THE WORLD.

Any idea to reduce fuel prices by sabre-rattling in front of the juggernauts of global wealth is stupid. This is not a David and Goliath fight. The basic argument is flawed. Once everyone empties out the tanks of the Mom-and-Pop fuel stations, who are those fuel stations going to go to for their fuel stock, that is if they aren't already buying it from Exxon or Shell? It is not possible to reduce the demand for a product by not reducing demand. This is basic capitalist economics. Compound that with the fact that Mom-and-Pop fuel stops, regardless of any increase in demand, aren't going to get any volume discounts from the Big 3. Single operations can't bargin with Exxon, Shell, or BP. Nope, you're better off buying form a large chain with the bargaining power to get a volume discount.

Truck drivers and farmers aside, to pay less for fuel, use less. That's it. If that's not possible and nothing can be changed, pony up and pay. Scrape back money from all those other necessities like iPods, $8 lattes, and disposable clothes from Le Chateau, buy stock in Exxon, Shell, or BP, and reinvest the dividends in the fuel bill.

In the meantime, whomever it is that comes up with these ideas, please stop trying to dupe everyone into thinking demand reduces demand. Otherwise, I've got a bridge to sell you, cheap...*/rant*

posted by Kyle @ 18:53