Quote:
Originally Posted by Kerplunk
This is one of the things that confuses me in this thread. Many are comparing gas prices to other industries. The two that pop up the most, construction and retail, all have competition. Don't like one, go to another. Wait for a good deal in the off-season. Do it yourself (yes, you CAN build your own deck...but it's a pain). If I want cheaper gas, I can't (most times) just go down the street to a cheaper station, or make my own. No competition is bad for consumers.
I thought that the report from the Canadian Centre for Policy Alternatives summed it up in their recent report:
http://www.cbc.ca/consumer/story/200...as-report.html
(side note: the Government could always help out by cutting down the taxes too....) |
The CCPA fails to understand the concept of Supply/Demand and only looks at a 'costplus' methodology. All that tells you is where the oil companies make more profit and not what price keeps a reliable supply at the service station. As I've mentioned many times in this thread the price is not simply costs plus a percentage profit. It is what price demand is willing to pay (Just like any other good or service).