I guess with the recent high price hike of petrol in Malaysia, many would have already received forwarded email regarding about an idea from Phillip Hollsworth on how to bring down the petrol price.
I got a forwarded mail on Phillip Hollsworth's idea. Initially, Phillip Hollsworth's idea sounded pretty good. But, if you take a few step just to look at the bigger picture, I feel that it won't work at all.
Just in a summary, Phillip Hollsworth suggested to boycott 1 particular petrol company, and pump from other instead. Phillip Hollsworth mentioned that this would ignite a price war against each other in the petrol industry.
But, consider this scenario below...
Just imagine that there are only 2 petrol companies in the world, Petronas and Kelvin Petrol. Supposedly u guys boycott Petronas, does that means u guys dont need to pump petrol? I guess not too.
That can only mean that u guys will pump at Kelvin Petrol. And one day, Kelvin Petrol's reserves wont be able to keep up with the overnight skyrocketed demand from the public, and Kelvin Petrol will not have enough refineries to cope with the demand!!
Then what happens? Kelvin Petrol will start buying from..... Petronas. And with Petronas holding fuels as hostage, now guess how much will they sell to Kelvin Petrol? Maybe RM 2.70 itself? Then Kelvin Petrol will sell it with a profit margin. And u guys will end up buying from Petronas again. And Petronas will just raise its price to match Kelvin Petrol.
So, if this chainmail by the Phillip Hollsworth keeps on circulating, who will be at the losing end? The Seller? or the Consumer?
Jun 13, 2008
Phillip Hollsworth's idea of petrol price war won't work
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K'rap Thoughts
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