Odd rules of the price war
Sometimes the explanation just makes me go “Huh??”. Perhaps that’s what convinces a person to accept the appointment to the judiciary. A chance to hear convoluted reasoning from others.
The price of gas, locally, has jumped to $1.19/litre. It’s a Canadian thing. We sit in envy of other places, while idling at the pumps. I mean, why do we have to pay that price, with a refinery within sniffing distance? Why do other provinces receive fuel from that same refinery, but manage to peddle the stuff for $1.03? I mean, there are many reasons, and I can accept that the government is harvesting valuable tax revenue, but why did our local price just go up by $0.07?
Remember the “Huh??”. Here’s some quoted rationalization from the news…
“When we see prices moving up and down, without any change in the underlying wholesale prices or with little wholesale price change, then it’s a reflection of price war activity.” – Michael J. Ervin, industry consultant.
The rise in price is due to what marketing experts refer to as a “price war”. Pardon my ignorance, but during a war, where gathering new market share is the goal, shouldn’t the price drop? Guess not. The tail of the beast is that a business always sells product for the best price the client will pay, and we have no alternatives. There is no discount market for gasoline. Prices are in a perfect sync, with any market having but one price available. That Canadian way, again.
