Fact Check

Selective Gasoline Boycott

Will participating in a boycott of selected oil companies lower gasoline prices?

Published Aug. 29, 2005

 (Melinda Fawver / Shutterstock)
Image Via Melinda Fawver / Shutterstock
Claim:
Participating in a boycott of selected oil companies will lower gasoline prices.

Examples:

[Collected on the Internet, 2006]

GAS WAR - an idea that WILL work

This was originally sent by a retired Coca Cola executive. It came from one of his engineer buddies who retired from Halliburton. It 's worth your consideration.

Join the resistance!!!! I hear we are going to hit close to $4.00 a gallon by next summer and it might go higher!! 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 on and join
with us! By now you're probably thinking gasoline priced at about $1.50 is super cheap. Me too! It is currently $2.79 for regular unleaded in my town. 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! Now, don't wimp out at this point.... keep reading and I'll explain how simple it is to reach millions of people.

I am sending this note to 30 people. If each of us sends it to at least ten more (30 x 10 =3D 300) ... and those 300 send it to at least ten more (300 x 10 =3D 3,000)...and so on, by the time the message reaches the sixth group of people, we will have reached over THREE MILLION consumers. If those three million get excited and pass this on to ten friends each, then 30 million people will have been
contacted! If it goes one level further, you guessed it..... THREE HUNDRED MILLION PEOPLE!!!

Again, all you have to do is send this to 10 people. That's all. (If you don't understand how we can
reach 300 million and all you have to do is send this to 10 people.... Well, let's face it, you just aren't a mathematician. But I am, so trust me on this one.)

How long would all that take? If each of us sends this e-mail out to ten more people within one day of receipt, all 300 MILLION people could conceivably be contacted within the next 8 days!!!

I'll bet you didn't think you and I had that much potential, did you?

Acting together we can make a difference. If this makes sense to you, please pass this message on. I
suggest that we not buy from EXXON/MOBIL UNTIL THEY LOWER THEIR PRICES TO THE $1.30 RANGE AND KEEP THEM DOWN.

THIS CAN REALLY WORK.


[Collected on the Internet, 2004]

GAS WAR!

Join the resistance!!!!

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 $1.97 for regular unleaded in my town. 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!! Now, don't whimp out on me at this point...keep reading and I'll explain how simple it is to reach millions of people!!

I am sending this note to about thirty people. If each of you send it to,at least, ten more (30 x 10 = 300) ... and those 300 send it to at least ten more (300 x 10 = 3,000)...and so on, by the time the message reaches the sixth generation of people, we will have reached over THREE MILLION consumers! If those three million get excited and pass this on to ten friends each, then 30 million people will have been contacted!

If it goes one level further, you guessed it..... THREE HUNDRED MILLION PEOPLE!!!

Again, all You have to do is send this to 10 people. That's all. (If you don't understand how we can reach 300 million and all you have to do is send this to 10 people.... Well, let's face it, you just aren't a mathematician.

But I am ... so trust me on this one.)

How long would all that take? If each of us sends this email out to ten more people within one day of receipt, all 300 MILLION people could conceivably be contacted within the next 8 days!!! I'll bet you I didn't think you and I had that much potential, did you! Acting together we can make a difference.

If this makes sense to you, please pass this message on. PLEASE HOLD OUT UNTIL THEY LOWER THEIR PRICES TO THE $1.30 RANGE AND KEEP THEM DOWN.

THIS CAN REALLY WORK.


[Collected on the Internet, 2002]

Gasoline prices are projected to reach $3.00 a gallon by the summer. Do you want prices to come down? If some united, intelligent action is taken, consumers can have a significant impact.

Last year, the "don't buy gas on a certain day" campaign was laughed at by the oil companies who knew consumers were only going to hurt themselves by refusing to buy gas, because of the personal inconvenience. Let's not repeat history.

BUYERS control the marketplace....not sellers. With the price of gasoline going up (currently between $1.50 - $1.95) and raising daily, consumers need to act. The only way we will see the price of gas come down is if impact the bottom-line of the oil sellers and not purchasing THEIR gas!! We can do that WITHOUT inconveniencing ourselves.

Since we all rely on gas for our cars, we can't just stop buying it. We CAN, however, force a price war.

Here's the idea:

For the rest of the year (beginning now-just after April 1st), DON'T purchase gasoline from the two biggest companies — EXXON and MOBIL. If they aren't selling gas, they will be lower the sale price. If they lower the price, other companies will have to follow suit.

To have an impact, we need to reach literally millions of Exxon and Mobil gas buyers. It's simple. The person who started this email message sent this to about thirty people. If each of them send it to 10 more (30 x 10 = 300) and those 300 send it to at 10 more (300 x 10= 3,000) . . . and so on,
by the time this message reaches the sixth generation of people, we will have reached over 3 MILLION consumers! If those three million get excited and pass this on to ten friends each, then 30 million people will have been contacted! If it goes only one level further, you guessed it . . . and THREE HUNDRED MILLION PEOPLE!

So, please send this to ten people.

How long would it take to reach 300 Million? If each of us sends this email out to ten more people within one day of receipt, all 300 MILLION people could conceivably be contacted within 8 days of origin. I'll bet you didn't think you and I had that much potential, did you? Acting together we can make a difference. If this makes sense to you, please pass this message on.

GIVE IT A TRY. If the oil companies lower prices, we all win.

Start now by sending this to 10 people and filling-up at a non-Exxon, non-Mobil station.


[Collected on the Internet, 2001]

Gasoline Prices

Whoever started this has a good point.

By now you're probably thinking gasoline priced at about $1.49 is cheap. Me too! As it is now $1.58 for regular unleaded. 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 less than $1.50, we need to try an aggressive response. 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 don't buy it. But, that's not really a practical option since we all have come to rely on our cars. But we CAN have an impact on gas prices if we all act together.

Here's the idea -

For the rest of this year, don't purchase gasoline from the two biggest companies (which now are one), EXXON and MOBIL. If they are not selling, they should be inclined to reduce their prices — and if they reduce their prices the other companies will too. But to have an impact, we need to reach literally millions of users. But it's doable!

I am sending this note to 35 people. If each of you send it to at least 10 more ... and those 10 send it to at least 10 more ... and so on by the time the message reaches the sixth iteration we will have reached over one million consumers. Acting together we can make a difference. If this makes sense to you, please pass this message on, or one you compose, to at least 10 more.

Thanks for your consideration.

This year's litany of complaints about gasoline prices is a re-run of the same program from years past: Gasoline prices in the USA are too high; gasoline is a unique commodity whose price isn't subject to the usual market forces of supply and demand; OPEC and greedy American oil companies secretly manipulate the market to keep prices artificially high; and a simple boycott of a couple of brands of gasoline will rectify all this.

Oil companies can manipulate their prices somewhat by controlling how much gasoline they produce and where they sell it, but they can't alter the basics of supply and demand: prices go down when people buy less of a good, prices go up when people buy more of a good, and prices go way up when demand outstrips available supply. The "gas out" schemes that propose to alter the demand side of the equation by shunning one or two specific brands of gasoline for a while won't work, however, because they're based on the misconception that an oil company's only outlet for gasoline is its own branded service stations. That isn't the case: gasoline is a fungible commodity, so if one oil company's product isn't being bought up in one particular market or outlet, it will simply sell its output to (or through) other outlets:

Economics Prof. Pat Welch of St. Louis University says any boycott of "bad guy" gasoline in favor of "good guy" brands would have some unintended (and unhappy) results.. . . Welch says the law of supply and demand is set in stone. "To meet the sudden demand," he says, "the good guys would have to buy gasoline wholesale from the bad guys, who are suddenly stuck with unwanted gasoline."

So motorists would end up . . . paying more for it, because they'd be buying it at fewer stations.

And yes, oil companies do buy and sell from one another. Mike Right of AAA Missouri says, "If a company has a station that can be served more economically by a competitor's refinery, they'll do it."

Right adds, "In some cases, gasoline retailers have no refinery at all. Some convenience-store chains sell a lot of gasoline — and buy it all from somebody else's refinery."

A boycott of a couple of brands of gasoline won't result in lower overall prices. Prices at all the non-boycotted outlets would rise due to the temporarily limited supply and increased demand, making the original prices look cheap by comparison. The shunned outlets could then make a killing by offering gasoline at its "normal" (i.e., pre-boycott) price or by selling off their output to the non-boycotted companies, who will need the extra supply to meet demand. The only person who really gets hurt in this proposed scheme is the service station operator, who has almost no control over the price of gasoline.

The only practical way of reducing gasoline prices is through the straightforward means of buying less gasoline, not through a simple and painless scheme of just shifting where we buy it. The inconvenience of driving less is a hardship too many people apparently aren't willing to endure, however.

Sources

    Brooks, Nancy Rivera.   "Crude Oil Prices Continue to Climb."     Los Angeles Times.   9 April 2002   (p. C1).

    Brooks, Nancy Rivera.   "Gas Supplies Manipulated, Report Says."     Los Angeles Times.   30 April 2002   (p. C1).

    Levins, Harry.   "Trying to Avoid Gasoline from Arab Oil Is Futile, Experts Say."     St. Louis Post-Dispatch.   21 April 2002.

David Mikkelson founded the site now known as snopes.com back in 1994.

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