Solution to gas hikes?

captain morgan

captain morgan

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alleywayzalwayz said:
It's not exactly the individual owners who set the price. The individual owners report their local competitor's price to head office through a automated telephone system. The system calls them back shortly after analyzing the data and tells the individual owner what to set the price at. Prices are usually checked twice a day, everyday. They are very consistent and that's why it seems like they never blink.

They don't want the price to be 1 - 2 cents per litre cheaper because that can trigger a gas war, where the prices spiral and they actually lose profit at the local level.

I was the manager at a gas station when I was younger and am very familiar with the automated system and how the prices are fixed.
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I think that you'll see that dynamic across a variety of industrial sectors. Grocery stores are also well known for doing much the same thing (although I can't say if it's via automated telephone system).

My point is that it is not collusion/price fixing per se. For that to be the case, I think that the prices rise but not so wildly over short periods of time.
 
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Taxx

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Apr 10, 2011
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the barrel of oil is down under one bill and gas hasn't gone down where I live. In fact, its up two cents.
 
cranky

cranky

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alleywayzalwayz said:
It's not exactly the individual owners who set the price. The individual owners report their local competitor's price to head office through a automated telephone system. The system calls them back shortly after analyzing the data and tells the individual owner what to set the price at. Prices are usually checked twice a day, everyday. They are very consistent and that's why it seems like they never blink.

They don't want the price to be 1 - 2 cents per litre cheaper because that can trigger a gas war, where the prices spiral and they actually lose profit at the local level.
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A few gas wars, followed by the never ending risk of more gas wars is exactly what consumers need in order to be freed of the price fixing that is going on.

Besides, I never heard of a 1-2 cent difference in coca cola triggering a downward spiral in prices until everyone loses profits at a local level.
 
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Taxx

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Apr 10, 2011
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On PEI the government sets the price for gas, within a 2 cent range, such as saying gas is between $1.23 and $1.25 like it is now. I was ot this morning and the price went down 6 cents since last night
 
JLM

JLM

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I bet I can ride the bus across Canada cheaper than I can drive, when you factor in depreciation.
 
Durry

Durry

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Heard Lorne Gunter on the radio a while back and he said a lot of the provinces have a tax on a tax at the gas pumps. If this was to be eliminated, this would cut $1.5 Billion from Government tax revenue. Everyone agrees apparently that it is illegal to tax a tax???
 
petros

petros

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Nov 21, 2008
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There is a "road tax" that apparently doesn't have anything to do with roads considering the **** condition they are in and govt saying we need to go into debt with "Stimulus Funding" to improve them.

In Russia they called that "painted rust" where you pretty it all up and say "look, we fixed it" but blow the money on moon pies and penny whistles.
 
F

Fallout

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Re - Solution to gas hikes?
I would come at it from a different angle, but unfortunately it would involve the collective backing up their complaining with action, which seems to be something that "We The people" are not very good at doing.

Anyhotch, here it is:
Take the largest petrol supplier in Canada, and everyone (I Mean Every Complaining Canadian) boycott the crap out of 'em until they drop the cost of their fuel by 40 cent per liter.

Thusly; the rest of the gouging gas corps would have to follow suit if they want to sell their stuff.
 
petros

petros

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Fallout said:
Re - Solution to gas hikes?
I would come at it from a different angle, but unfortunately it would involve the collective backing up their complaining with action, which seems to be something that "We The people" are not very good at doing.

Anyhotch, here it is:
Take the largest petrol supplier in Canada, and everyone (I Mean Every Complaining Canadian) boycott the crap out of 'em until they drop the cost of their fuel by 40 cent per liter.

Thusly; the rest of the gouging gas corps would have to follow suit if they want to sell their stuff.
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And that is how you create shortages and even higher gouging.
 
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