Is it really that complicated?

Question

So if Mobil (for example) dropped its price to $2.50 per gallon, everyone would flock there. Wouldn't the others have no choice but to follow suit?

Mobil wouldn't lose any money, in fact they'd reap 10x more for several days because everyone would go there. The economy would improve because people would travel. They'd also spend more in general, because they'd have money to spend.

Maybe it's not this simple. Sure seems that way. Feel free to tell me what boat I'm missing. On the other hand, star it, maybe it'll grab someone's attention who is in a position to pass the message along.

Answer 1

mobil sells oil to the refinery, they refine the oil into gas and other products,to sell to the stations. the gas staions have nothing to do with the price of  a gallon of gas

Answer 2

awsome idea, but I think because the price of oil is so high right now it wouldn't work. Like, I could make a 5 dollar car everyone in the world would buy one, however if it cost me 100 dollars to make it wouldnt matter how many I sold I would still be in debt.

Answer 3

They cant lower the price of fuel their paying thru the teeth to get it from Saudi Arabia and those "windfall profits" the libs like to tell you about is complte BS do u know how much they pay in taxes?

Answer 4

In a perfect world, maybe an oil company would reward us or even tease us with low gas prices. However, to change the price of oil, one has to deal with the NYMEX, an organization that sets the prices of oil through buying and trading. This would be hard since oil companies don't usually sell to the general public.

In the scenario you gave, what might happen is that the individual gas station might keep prices normal and make a fortune on the difference. Also, why would Exxon want to lower prices, they're so rich that one of their executives literally owns a town in England. That kind of money can be hard to turn down.

Answer 5

No!

Answer 6

the thing is that when the gas station get the gas from the companys they have to pay a certain price for it so that when they sell the gas they have to earn enough money so that they an pay for the gas and earn some money at the same time!!

Answer 7

Oil, like most commodities, work in cartels. If one raises the prices, everyone follow suit.

This is their business practice all those years to minimize anti competition practices. Trade practices is one thing which can't be changed overnight because it will result in implications to the related industries.

So, there will be no choice. We only have to wait for a recession to happen so that the demand for oil will be decreased & this will stop unscrupulous enterprises from profiteering during a chaotic time like this.