More illogical petrol price crap...

[jjs 60]

LET'S JUST DO IT ! ! !

THIS IS NOT THE 'DON'T BUY' PETROL FOR ONE DAY, BUT IT WILL SHOW YOU HOW WE CAN GET PETROL BACK DOWN TO $1.00 PER Litre....hopefully

This was originally sent by a retired Coca Cola executive. If you are tired of the gas prices going up AND they will continue to rise this winter, take time to read this PLEASE.

Phillip Hollsworth offered this good idea.

This makes MUCH MORE SENSE than the 'don't buy petrol on a certain day' campaign that was going around last April or May!

It's worth your consideration. Join the resistance!!!!

We are going to hit $ 2.00 a litre and it might go higher!! Want petrol prices to come down?

We need to take some intelligent, united action. The oil companies just laughed at that because they knew we wouldn't continue to 'hurt' ourselves by refusing to buy petrol.

It was more of an inconvenience to us than it was a problem for them.

BUT, whoever thought of this idea, has come up with a plan that can Really work. Please read on and join with us!

By now you're probably thinking petrol priced at about $1.50 is cheap.

It is currently $1.90 for regular unleaded.

Now that the oil companies and the OPEC nations have conditioned us to think that the cost of a liter of gas is CHEAP at $1.50, we need to take aggressive action to teach them that BUYERS control the marketplace...not sellers.

With the price of gasoline going up more each day, we consumers need to take action.

The only way we are going to see the price of petrol come down is if we hit someone in the pocketbook by not purchasing their petrol! And, we can do that WITHOUT hurting ourselves.

How? Since we all rely on our cars, we can't just stop buying petrol.

But we CAN have an impact on petrol 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 petrol from BP

NZ the biggest price up driver company.

If they are not selling any petrol, 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 BP NZ petrol buyers. It's really simple to do! Now, don't wimp out on me at this point...keep reading and I'll explain how simple it is to reach millions of people!!

I am sending this note to 20 people. If each of us s end it to at least ten more (20 x 10 = 200) .. And those 200 send it to at least ten more (200 x 10 = 2000 ... and so on, by the time the message reaches the sixth group of people, we will have reached over TWO MILLION consumers.

If those three million get excited and pass this on to ten friends each, then 20 million people will have been contacted!

If it goes one level further, you guessed it..... TWO HUNDRED MILLION PEOPLE!!!

Again, all you have to do is send this to 10 people. That's all!

I'll bet you didn't think you and I had that much potential, did you!

Acting together we can make a difference.

If this makes sense to you, please pass this message on THEY LOWER THEIR PRICES TO BELOW THE $1.50 RANGE AND KEEP THEM DOWN. THIS CAN REALLY WORK.

Simple - send the message along to other and do not buy petrol from BP NZ

Edited May 28, 2008 by JJS

[Grant 4]

This also did the rounds a couple of years back. More crap.

I 90% of the time buy my petrol at BP, will continue to do so.

It was probably started by a Shell or other oil company employee!!

Cheers

Grant

Edited May 28, 2008 by Grant

[OLLIE 26]

haha crap

i've had the exact same email except it said don't buy shell or mobil. haha load of bollocks

[Avenged.SSE 0]

If in theory people did do this (and I don't understand why you'd buy from BP anyway, all the ones around here are a ripoff!) then why would it not work? Obviously there's a big IF in there.... but it makes logical sense to me O_o

[*sic 1]

slaves to oil, all of you.

[Grant 4]

(and I don't understand why you'd buy from BP anyway, all the ones around here are a ripoff!)

1) The closest station to my house is a BP

2) The most convenient station, and quickest for me to fill up in, if in need (and I would probably fill up here 60% of the time), on my at least twice weekly trips to Hamilton for work is the BP at Ngaruawahia

3) I don't really care about the price of petrol - I bill it to my clients anyway.

4) I get AA rewards points at BP - which easily covers my annual membership, and often other bits and pieces.

Therefore avoiding a BP would inconvenience me, and therefore this email spam to me is illogical.

[Mark 178]

If in theory people did do this (and I don't understand why you'd buy from BP anyway, all the ones around here are a ripoff!) then why would it not work? Obviously there's a big IF in there.... but it makes logical sense to me O_o

Supply and demand. If everyone buys from Brand A they have to put their price up because demand is higher than supply. This in turn makes Brand B appear cheaper and then everybody goes to fill up at Brand B's pumps who then have to raise THEIR price due to demand outstripping supply. In the meantime Brand A can afford to drop their price back to normal levels again.... and the cycle starts all over again.

As you can see the only group losing out in this misguided system are the consumers, who never get cheaper petrol but in fact pay MORE for it!

Stupid, stupid, stupid chain-emails!

[pjay 8]

Meh i buy from shell for flybuys. Have done since i was 16

[M325is 0]

You cant get 96 anymore at bp so I go to shell. I only use 98 when I know I need that extra power or for long trips etc.

[CamB 48]

It won't work because the oil companies will actually have a fairly limited ability to reduce the price and still make money. The "profit" component for the **local** oil companies is not a large part of the final price of petrol.

Sure, BP could reduce the price if no-one went, and that might cause the others to follow, but in a reasonably short period of time they'd need to raise it again or face losses.

The best case scenario would see the price lowered to a point where the oil companies **just** made enough money to cover costs (but little or no profit), which would mean little or no ongoing investment in NZ. I'd guess this might be 5c a litre - there appears to already be ample competition between the oil companies in the countries to keep prices down as far as they can push them.

(edit) for those who think it would work "worldwide", it won't - a competitor which became "weak" purely because of consumer activism would be acquired by one of the remaining "strong" competitors ---> back to status quo but with one less participant in the market (ie arguably less competition).

Edited May 28, 2008 by CamB

[Driftit 1966]

I cant run anything other than 98 in my car. F all Mobils have 98. So BP it is.

[kerrynzl 3]

Like our Banks, Oil companies are just "middlemen" in the equation. Adding a percentage to the value

They have to source their raw materials from a supplier [ usually a politically unstable OPEC government ] which will only accept US$ [ which is falling in value because of a banking crisis , so they try and recoup spending power ]

Because Oil has increased in price, our GOVT has also increased it's tax take [ it is a fixed percentage ]

If we were totally successful in boycotting BP ,there would be one less competitor in our market [ we all know a 'monopoly' is a fair system. haha! ]

The oil co's cannot buy or refine enough of the stuff, China is now part of world demand yet only 4% of their population have cars and increasing [ USA, Europe, Aus & NZ is closer to 80% car ownership ]

What will eventually happen is economic downturn in the West, which is the opec & china's biggest market. the on flowing effect will slow them down as well.[ China is already showing these symptoms ]

so eventually demand and supply will equalize, and the free market will stabilize itself. [ all this because our source of cheap money started to dry up ]

So if you don't need it , then dont buy it. If you do, then keep buying it.

Incidentally, if that stupid chain letter was successful anyone 'promoting' it could be prosecuted by the commerce commission [ a restrictive trade practice under the fair trading act , which work for monopolies as well ]

[ED1RTY 2]

I actually spent more time reading the relevant information in Kerry's post than I did reading the initial 'FWD'

I couldn't agree more with you Kerry!

[Jeddy 0]

so eventually demand and supply will equalize, and the free market will stabilize itself. [ all this because our source of cheap money started to dry up ]

I agree with most except this as OPEC's a very disciplined cartel and as its not exactly in perfect competition so will reduce supply, spread rumours about shortages in supply in order to sustain the higher prices.

I laugh so hard to myself when i see things like this(the original post)

[kerrynzl 3]

I agree with most except this as OPEC's a very disciplined cartel and as its not exactly in perfect competition so will reduce supply, spread rumours about shortages in supply in order to sustain the higher prices.

Everything is demand and supply, in the early 80's after the Ayatollah took over Iran their was a war between Iraq and Iran [ they both needed to finance the war ] and the world cut back on oil consumption because of the 1979 oil crisis. Oil dropped to US $35.00 a barrel.

now that China and India are new players the demand is higher than ever.

Oil [ like any commodity ] does not produce a yeild like a financial security. Oil Co shares produce a yeild, but the oil doesn't [ its a consumable ]

When an "investor" buys oil contracts on the spot or futures market they are actually driving up the p[rice of oil [ demand ] there is no yeild from a futures contract, the only money to be made is from speculation.

Right now there is a financial securities crisis so investors are jumping over to commodities [ not just oil ] consequently everything is overbought [ more buyers than sellers ]

Housing and financial securities are presently oversold worldwide [ take your pick if you want a house ]

presently the banks have to "buy" their money from investors at a premium.

Borrowers cant afford the rates so they dont borrow, then money becomes a liability to the banks [ so yes interest rates will fall, they have to ] Interest rates go up in inflation not a depression.

The Chinese govt were very clever with their wealth, they kept it offshore. If they raised their standard of living across the board they would never have cheap labour [ presently China is the world's factory ]

Their economy is very one-way, for example exporting to China is almost impossible because the west is too expensive. So western Co's just set up in China to sell to the local market [ Ford etc ] eventually these products will be exported.

When western demand falls, so will their appetite for commodities [ because of an economy dependent on export]

Oil is one of these comodities.

In China a 1997 Camry is worth 100,000RMB [ NZ $20,000 ] an appartment in an average city [ Nanning ] is worth about 250,000RMB so the car is a Very expensive commodity that requires overseas imported oil to run

[CamB 48]

When an "investor" buys oil contracts on the spot or futures market they are actually driving up the p[rice of oil [ demand ] there is no yeild from a futures contract, the only money to be made is from speculation.

Right now there is a financial securities crisis so investors are jumping over to commodities [ not just oil ] consequently everything is overbought [ more buyers than sellers ]

There's some evidence "investor" is actually "speculator". As you say, futures are different to buying and holding the physical asset - there are winners and losers (from value changes) without actually affecting the underlying supply.

This "virtual ownership" appears to be making the price significantly more volatile.

[kerrynzl 3]

There's some evidence "investor" is actually "speculator". As you say, futures are different to buying and holding the physical asset - there are winners and losers (from value changes) without actually affecting the underlying supply.

This "virtual ownership" appears to be making the price significantly more volatile.

Anybody that buys [ or invests ] in anything that requires a price movement is a speculator.

whereas a "dealer" which is the category that I place Oil Co's in, trade on present values.

eg: they sell oil at a given price, but buy it for less [ even if prices stay the same ]

Ron, you are correct. USA is the biggest culprit . The country was built on greed and guns.

The wankers will tell you USA was built on overcoming opression [ British rule ] This was actually said to me by a Black American once, and they think islamists are fanatics.

Like I said, the real crisis is in the financial markets ,which is overflowing into everything else.

China is starting to feel the pinch now, When I was over there in January the poverty & unemployment was everywhere.

In Beijing there was a huge slump in residential property values. Urban dwellings have a 80% owner occupier rate in China which is higher than NZ [ only 15% have a mortgage , which has stalled residential sales ]

I heard of a Bank doing mortgages at negative interest [ obviously subsidised by the developer ]

Our economy runs [or is propped up ] on credit

[CamB 48]

Anybody that buys [ or invests ] in anything that requires a price movement is a speculator.

whereas a "dealer" which is the category that I place Oil Co's in, trade on present values.

Not in all cases - for example a stock that doesn't pay dividends (or very small ones), but reinvests for growth, will show an increase in value through the share price and this isn't "speculation", but I take your point.

Our economy definitely runs on credit - that's one of the key reasons why we have such a high current current account deficit.