May 15th Gas Boycott Fails, As Usual

Friday, May 18, 2007

Summary: One-day boycotts do not work.

Like clockwork for the past few years, emails circulate calling for one-day gas boycotts with the assumption that if people do not buy gas on one particular day, the gasoline storage facilities will be backup with excess supply and as a result, gas stations will be forced to lower their prices. While this sounds good in theory, the fact is that one-day boycotts, regardless of the industry, simply do not work. This is because the overall same quantity of product will be sold, be it one day or the next. The boycott on May 15, 2007 was, as we have always predicted, a total bust. Refusing to buy gasoline over a long term to force prices to drop can work, but not as a one-day boycott. The price of gasoline, just as with other commodities, is partly priced on supply and demand. If people really want to see lower gas prices, then we all need to drive less. We know this sounds simplistic, but just driving less will save people money on their gas expenditures. If longer term consumer purchasing trends indicate people are not paying the high prices thus causing a longer-term gas glut, then prices will drop to the level consumers are willing to spend for gasoline. The market will bear out any price people are willing to pay, and right now, people are willing to pay.

©2007 Boycott Watch