Gas Station Monopoly


Notice how all the gas stations seem to have the same price. How do they know what price to set? How can most gas stations have the same price in a free market society?

The word for this is Monopoly, the only way gas stations and companies can set the same price is by monopoly, they have to call each other and find out how much or how much they are going to sell it for. Ok, so maybe they drive around the city looking up gas stations prices, really I am sure they do that!? So, how do you explain that when gas goes up, we usually know day before hand or night before and not only one or two stations go up, they all go up. If this is not a monopoly, then I’m Harry Potter. How long will government allow this massive e monopoly continue?

The simple solution is in two parts.

1) make a law no two gas stations can have the same price

2) take oil as a commodity off the market and get stock markets to invest in the oil companies not the oil or if you invest in stock you actually have to buy the oil and store it.

In general the idea of commodities market is a way to push up global prices. It would be much better if there was no commodity market and  investors invest in the companies that produce or mine it.

In my opinion the oil commodity market caused the market crash of last. Companies had to start paying huge amounts of transportation costs to ship their products, consumers had to rethink, whether they can afford to take the car to the supermarket or mall, thus causing a massive market crash, I speak from personal experience on this, here’s my example:

I used to put out those new home or new model home directional signs on the curb side every Friday and take them down on Sunday evening. When I started that sideline business, gasoline was around $0.69/liter and around that time I had leased a new F150 4 x 4 for the harsh winter weather. Well when the gas reached $1.47 I quit the business, since every penny of earnings went to pay the fuel costs, my clients didn’t want to pick up the excess tab, therefore bust.

True, we want to use less gasoline to curb pollution, but that’s not the way to do it. If our governments were serious about stopping pollution, we all would be driving electric cars powered by magnetic electric generators that produce electricity with out external sources of power. Most don’t know that there are electric motors for air planes too and same principal can apply to them.

Veature.

Advertisements
By veaturesworldnews Posted in Opinions