Facts, and Myths, About Gasoline

Now all of us, at one time or another, have read these, heard these, even participating in these. Well, now you will find out that all of it is a waste of your time.

Myth: Boycotting some gasoline brands will decrease overall gas prices
Sample copy: “GAS WAR! Join the resistance!!!! I hear we are going to hit close to $3.00 a gallon by the summer. Want gasoline prices to come down? We need to take some intelligent, united action…”It then urges: “Here! ‘s the idea: For the rest of this year, DON’T purchase ANY gasoline from the two biggest companies … If they are not selling any gas, they will be inclined to reduce their prices. If they reduce their prices, the other companies will have to follow suit.”

Facts:

  • Companies can’t alter the basics of supply and demand: prices go up when people buy more of a product, and they go down when people buy less of a product.
  • A boycott of specific brands wouldn’t result in lower overall prices: Prices at all the non-boycotted outlets would probably rise due to the temporarily limited supply and increased demand, and would actually make the original prices look cheap by comparison.
  • The only practical way for consumers to help bring about a decrease in gasoline prices is by decreasing demand by buying less gasoline, not just shifting where it’s bought.

Details at http://www.snopes.com/inboxer/petition/gasout.htm.

Myth: Participating in a one-day ‘gas out’ will help bring the retail price of gasoline down
Sample copy: “It has been calculated that if everyone in the United States did not purchase a drop of gasoline for one day and all at the same time, the oil companies would choke on their stockpiles.

At the same time it would hit the entire industry with a net loss of over 4.6 billion dollars which affects the bottom lines of the oil companies.

Therefore May 19th has been formally declared ‘stick it up their behinds day’ and the people of this nation should not buy a single drop of gasoline that day.”

Facts:

  • By definition, a boycott involves the doing without of something. What the “gas out” calls for isn’t consumers swearing off using or buying gasoline, even for a short time, but for them to simply shift their purchases by one day.
  • Gasoline is a fungible, global commodity, its price subject to the ordinary forces of supply and demand. No amount of consumer gimmickry and showmanship will lower its price in the long run; only a significant, continuous reduction in demand will accomplish that goal.
  • Moreover, the primary effect of the type of boycott proposed in the “gas out” messages is to hurt those at the very end of the oil-to-gasoline chain, service station operators — the people who have the least influence in setting gasoline prices and survive on the thinnest of profit margins. As such, the “gas out” is a punch on the nose delivered to the wrong person.

Details at http://www.snopes.com/politics/business/nogas.asp

Myth: Cell phones have touched off explosions at gas stations
Sample copy: “In case you do not know, there was an incident where a driver suffered burns and his car severely damaged when gasoline vapors ignited an explosion while he was talking on his mobile phone standing near the attendant who was pumping the gas. All the electronic devices in gas stations are protected with explosive containment devices, (intrinsically safe) while cell phones are not. READ YOUR HANDBOOK!”

Facts:

  • The Cellular Telecommunications Industry Association has said, “There is no evidence whatsoever that a wireless phone has ever caused ignition or explosion at a station anywhere in the world. Wireless phones don’t cause gas stations to blow up.”
  • The American Petroleum Institute notes, “We can find no evidence of someone using a cell phone causing any kind of accident, no matter how small, at a gas station anywhere in the world.”
  • In fact, creating an fire from a cell has not been demonstrated experimentally that it’s even possible – which a 2004 broadcast of The Discovery Channel’s Mythbusters program confirmed.
  • It is unlikely that cell phone batteries could ignite gasoline fumes, given that they are the same voltage as automobile batteries (12V D.C.) but deliver far less current. Likewise, cellular phone “ringers” do not produce electricity –  they produce audio tones that simulate the sound of a ringing telephone.

Details at http://www.snopes.com/autos/hazards/gasvapor.asp

 

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Category: New Facts

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