March 22, 201511 yr Why should oil companies be viewed differently than any other company when it comes to "gouging?" The public's refusal to change their habits or move closer to where they need to get to has made it easy for the oil companies. Why should they take less profit?
March 22, 201511 yr Driving from Atlanta home today. Pilot-Cleveland, Tn - 1.99 Krogers-Ft. Mitchell to use discount, 2.49 before discount.
March 23, 201511 yr Why should oil companies be viewed differently than any other company when it comes to "gouging?" The public's refusal to change their habits or move closer to where they need to get to has made it easy for the oil companies. Why should they take less profit? So should oil companies be able to charge what they want?
March 23, 201511 yr So should oil companies be able to charge what they want? Like every other business? Yes.
March 23, 201511 yr Like every other business? Yes. Serious question. When does it become price-gouging? Post-disaster practices come to mind. But in fairness, that might be a local phenomenon.
March 23, 201511 yr Serious question. When does it become price-gouging? Post-disaster practices come to mind. But in fairness, that might be a local phenomenon. Other than post disaster? It's not IMO. At some point a gas price will cause us to change our behavior and stop buying as much gas. However, until then they're in a strong position.
March 23, 201511 yr Author Companies should be able to charge what they want. But when the 'average' for a local area looks like the chart I posted in the original post then there is at least a possibility of collusion. And that would be less than legal and defeat the market system that should keep stupid things like sudden, no reason, jumps in price from happening. But whether its BP, Shell, Gulf, Marathon - they move in unison on the same days when there is no macro issue driving the change.
March 23, 201511 yr Companies should be able to charge what they want. But when the 'average' for a local area looks like the chart I posted in the original post then there is at least a possibility of collusion. And that would be less than legal and defeat the market system that should keep stupid things like sudden, no reason, jumps in price from happening. But whether its BP, Shell, Gulf, Marathon - they move in unison on the same days when there is no macro issue driving the change. Collusion would be difficult to prove. Let's assume they were colluding. Unless there was written evidence all an owner would have to say is he/she responded to the local competitor changing their price.
March 23, 201511 yr Other than post disaster? It's not IMO. At some point a gas price will cause us to change our behavior and stop buying as much gas. However, until then they're in a strong position. There's a point you've done everything you can but you still have to buy gas. What then? I assume you're ok with utility companies charging what they want as well then.
March 23, 201511 yr There's a point you've done everything you can but you still have to buy gas. What then? I assume you're ok with utility companies charging what they want as well then. Gas is no different than food. We don't say milk companies should be limited. We don't say Hostess should be limited. As far as utilities go that depends on legislation. I'm not well-versed on the subject but my understanding is each state can decide whether they allow competition or not. If not, then no. It has to be regulated.
March 23, 201511 yr Gas is no different than food. We don't say milk companies should be limited. We don't say Hostess should be limited. As far as utilities go that depends on legislation. I'm not well-versed on the subject but my understanding is each state can decide whether they allow competition or not. If not, then no. It has to be regulated. So your ok with states regulating utilities but not gas? And no gas isn't in the same category as milk. As a country our economy doesn't depend on milk or hostess. Those things are not necessities. I'm all for oil companies making a profit but they shouldn't be able to just name their price with zero oversight.
March 23, 201511 yr So your ok with states regulating utilities but not gas? And no gas isn't in the same category as milk. As a country our economy doesn't depend on milk or hostess. Those things are not necessities. I'm all for oil companies making a profit but they shouldn't be able to just name their price with zero oversight. Food isn't a necessity?
March 23, 201511 yr S I'm all for oil companies making a profit but they shouldn't be able to just name their price with zero oversight. And the result would be less incentive for consumers to decrease consumption and less incentive for oil companies to produce gas.
March 23, 201511 yr And the result would be less incentive for consumers to decrease consumption and less incentive for oil companies to produce gas. Oil companies need an incentive to produce gas? I didn't realize it was our job as consumers to pay above marked values to give them "incentive."
March 23, 201511 yr A few thoughts: I get the supply and demand argument as well as the capitalism side of things. Quick question, if every diaper company tripled their price tomorrow, would anyone have a problem with that? Maybe they even slow down production to lessen the available supply to the consumer. Easy answer is no, because someone would fill that need for affordable diapers very quickly. Pampers would love to charge $5 a diaper, but they can't because they'd be priced out of of business. Oil is a different animal. Can't apply the same set of rules.
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