The economics of gasoline protests
I thought I’d take a moment to point out, since I’ve gotten a bazillion IMs and emails about it, that the proposed boycott of gasoline pumps on May 15th makes absolutely ZERO economic sense, nor will it have any impact on pump prices.
Basic facts: gas stations buy gasoline deliveries like investors do, on a futures and spot prices market. Shipments are brought in that refill stations between 7 and 10 days apart, sometimes somewhat quicker if it’s a busy station.
Deferring a gasoline purchase on one day simply pushes demand to the subsequent days, because unless you stop or decrease your driving, your gasoline consumption will not change in aggregate, and therefore neither will the price of gasoline.
Want to do something EFFECTIVE on May 15th? Want to make gasoline prices CHANGE? Do these two things:
First, inflate your tires to the maximum safe pressure recommended by the vehicle manufacturer. For my car, for example, this is 38 psi. The dealership sets the tires at 28 psi because it gives the perception of a smoother ride at the cost of more fuel. Inflate to the max safe pressure, and keep your tires at that pressure year round. Cost: free. Savings: you can boost your gas mileage by 10% - 15%. If everyone committed to maintaining tire pressure for a year, you WOULD decrease gas demand by 10% - 15% - not a small chunk of change.
Second, to benefit the overall energy situation, change out one incandescent light bulb with a compact fluorescent bulb. Overall reduction of energy usage frees up resources and contributes less pollution.
Make May 15th have some meaning, and protest effectively with steps that make a real economic difference.
