True or false: will this reduce gasoline price or not?

Question

some retired oil executive suggested this idea for cutting down gas price --

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!

Answer 1

It will be a revolving door so you don't buy there the other companies will keep the same prices.

Answer 2

Sounds great but people still need the gas and will buy it elsewhere. Realistically, it won't happen

So: False

Answer 3

Won't work, and here's a link to the analysis on why this won't work.

Answer 4

I would say this could work in theory.  But to your earlier point you would need to have millions of US citizens purchase their gas from the other companies and avoid Exxon Mobil.  That could be a huge undertaking since most people will purchase out of convenience.

Answer 5

Say the gas company bought a liter for $2 and payed taxes of $1 and had borne the cost of storage and transport and staff salary and equipment etc, $0.50.

So even if we do not buy from them, they can not reduce the price much enough to make a difference really, short of going bust (meaning we wont be able to buy at all!)

Or if we boycott them and buy from others, we create a sort of monopoly which may push the price higher. And Exxon & Mobil will sell to these companies the oil they have, so Neither Exxon nor Mobil will go bust but we will create another giant to join them!

Good idea, but hardly practicable and thnk we are better off reducing oil consumption to bring the price down.

cheers

Answer 6

Wont work. The remaining gas companies will jack up their prices and the ones you're boycotting will sell to them. My sister owned a Shell station in Florida years ago and what shell was doing was selling gas to independent stations ( not

Shell stations ones like Gas To Go places ) for less then what the were charging Shell retailers. Shell has a law suit against them for that but it will be a few generations till that's settled. Your idea is good but the price war will be up not down. Oil companies work together to rip off the consumers. To bad we are a civilized society, a few bombings of Oil company's headquarters, kidnappings of executives will bring about  change, revolutions for the good of the people. But like I said, to bad we are to civilized for that.

Answer 7

Exxon Mobil is the same company just different names. but yeah it would work in theory but you have to literally get everyone in the country to do it which you can't but if  by some miracle you did then yeah it would help to lower cost.

Answer 8

...I don't think it will be effective. The following reasons WHY are listed below.

1) People need to drive, therefore, need GAS

2) U.S. has like trillion people