Straight Dope Message Board

[zev_steinhardt]

The Bee County (Texas) Commissioners voted on Monday 4-1 to urge people to stop buying from Exxon Mobil until the price of gas drops down to $1.30 a gallon.

(Source)

I'm just floored. I understand people's frustration at high gas prices and the fact that they want to do something about it. But this is just ridiculous.

Haven't these people been following the news lately. Don't they realize that the price of oil is up all over the world and that Exxon Mobil doesn't have any control over that price? Don't they have the slightest inkling that no one can afford to make gas for $1.30 a gallon, since almost half the cost of a gallon of gas comes from the price of crude oil? (Source) Not to mention the fact that Texas has a 20 cent per gallon gas tax, that means that they want it sold for $1.10. Add in refining costs, distribution and other costs, they are, essentially, asking ExxonMobil to provide gas for well under a dollar a gallon.

Now, I'm no economist. But I know enough to know that you can't force someone to sell something at below cost! Are these elected officials so economically illiterate that they don't see a dumb proposal?

One of my favorite lines from the article was this:

Judge Martinez said he can't see how a boycott would really hurt the local Exxon station owners, because people hardly have any money left to spend in the store after filling up outside.

Well, considering that gasoline makes up two-thirds of their sales (see article), if you can't see how boycotting 2/3 of someone's buisness (for factors that are beyond their control anyway), then you seriously need to install some brain cells.

Zev Steinhardt

(Note: I'm aware that there have been emails circulating for years asking for gas to return to $1.30. This, however, is not an urban legend.)