Today I received this e-mail in my Inbox about a planned petrol price protest on the Feb 22nd in Australia. Real funny e-mail. Irrespective of the claims of the protest and its possibility lets look at the lack of economic thinking which has led to the creation of this mail.
The mail starts with this:
IT HAS BEEN CALCULATED THAT IF EVERYONE IN AUSTRALIA DID NOT PURCHASE A DROP OF PETROL FOR ONE DAY AND ALL AT THE SAME TIME, THE OIL COMPANIES WOULD CHOKE ON THEIR STOCKPILES.
Well, in fact it will tougher if there is more demand than supply than the other way round. They got this one wrong.
AT THE SAME TIME IT WOULD HIT THE ENTIRE INDUSTRY WITH A NET LOSS OVER 4.6 BILLION DOLLARS WHICH AFFECTS THE BOTTOM LINES OF THE OIL COMPANIES.
It’s beyond me how you can go from low demand to a net loss and that for one day. The pent up demand will come back the next day. In fact, the most hit may be the distribution companies. Anyways, Australia is too small a player to make any difference. In fact, South Australia gets its oil from a refinery in Singapore. That low in demand!
THEREFORE FRIDAYFEBRUARY 22nd HAS BEEN FORMALLY
DECLARED STICK IT UP THEIR ASS’ DAY AND THE PEOPLE OF THIS NATION SHOULD NOT BUY A SINGLE DROP OF PETROL THAT DAY. THE ONLY WAY THIS CAN BE DONE IS IF YOU FORWARD THIS E-MAIL TO AS MANY PEOPLE AS YOU CAN AND AS QUICKLY AS YOU CAN TO GET THE WORD OUT.
Try your luck…
WAITING FOR THE GOVERNMENT TO STEP IN AND CONTROL THE PRICES? IT IS NOT GOING TO HAPPEN. WHAT HAPPENED TO THE REDUCTION AND CONTROL IN PRICES THE ARAB NATIONS PROMISEDLONG AGO?
THE PRICES JUST KEEP GOING UP AND WE NEED TO STOP IT
PETROL PRICES ARE CAUSING OTHER EFFECTS; AIRLINES ARE FORCED TO RAISE THEIR PRICES, AS ARE TRUCKING COMPANIES . THIS INCREASES PRICES ON EVERYTHING THAT IS SHIPPED. THINGS LIKE FOOD, CLOTHING, BUILDING SUPPLIES MEDICAL SUPPLIES ETC. WHO PAYS IN THE END? WE DO! WE CAN MAKE A DIFFERENCE. IF THEY DON’T GET THE MESSAGE AFTER ONE DAY,WE WILL DO IT AGAIN AND AGAIN. SO DO YOUR PART AND SPREAD THE WORD. FORWARD THIS EMAIL TO EVERYONE YOU KNOW. MARK YOUR CALENDARS AND MAKE FEBRUARY22nd THE DAY CITIZENS OF AUSTRALIA SAY ‘ENOUGH IS ENOUGH’
Well, the connection of petrol prices to food and clothing is right. However, if we look at this from a carbon point of view in fact, we need to increase the price of petrol in order to curb its demand. Simple economics, price goes up and the demand should go down. This week’s BRW magazine (no online linking possible) has an article on how Australia has least expensive petrol after the US and China. That doesn’t help.
The interesting thing is that people do not understand simple economics and try to solve the big problems of the world.