OTHER WAY TO DECREASE GASOLINE PRICE?
By Beni Bevly
In Indonesia, most natural resources are occupied, exploited, controlled and managed by Indonesian State Owned Enterprises or Badan Usaha Milik Negara (BUMN). In contrary, in the United States, private companies have the right to do such as things, for example Exxon Mobile that becomes the the most profitable company. Even though Indonesia and the United States governments have the different ways to manage their natural resources, there is one common, the price of natural resources, especially the gasoline price keeps increasing.
How are the reactions from people of these two nations regarding the gasoline price hikes? In Indonesia, there is mainly marked with protest and demonstration method that tend to lead to violence. Whereas, the people in the United States tend to utilized media and moral pressure method to the related company, such as Exxon Mobile and to the government. Below are the examples how they utilize media and moral pressure to the government.
Today, there is a news that spreads all over the United States. It mentions about how the hot weather influences gasoline, how it costs consumers and how to act to lower the price.
Fuel expands when temperatures rise, but most retail gas station nozzles don’t adjust for volume differences based on temperature. That oversight means California motorists could be losing up to 3 cents on every gallon, or $480 million annually, according to an estimate by the Foundation for Taxpayer and Consumer Rights (Examiner.com, 5/11/2007).
To:
Gov. Arnold Schwarzenegger
Assembly Speaker Fabian Nuñez
Senate President Pro Tem Don PerataDear California leaders,
We urge you to call a special legislative session to debate and take action on the price of gasoline in California. Prices are at crisis level, and we citizens of your state can’t take it any more.
A fill-up is costing us $7 to $15 more than in the rest of the nation. Prices have passed last year’s record level and it is still weeks before the peak summer driving season begins. Oil companies and refiners are making unheard-of profits from gasoline in our state, with no substantial relief in sight.
We urge you to discuss regulatory structures and changes to bring down prices and prevent unreasonable pump-price spikes like the one we are now enduring.
We want you to act now (Comsumerwatchdog.org, 5/11/2007).
(For you who want to sign a petition, click here).
Both of these methods, Indonesians’ and Americans’ ways, do not really show positive result. Is there any other way to decrease the gasoline price within short term?
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*Beni Bevly holds BA in Political Science, MBA in Marketing, and is a DBA (Doctor of Business Administration) candidate. He is the founder of Overseas Think Tank for Indonesia.
The most sustainable, if not most effective, way to decrease gasoline price is perhaps to reduce demand. The government needs to provide education and means to promote this (e.g. policies, infrastructure). Let market decides the price.
There are easy short-term solutions out there at the moment:
1. If you’re in a developed countries (unfortunately I have to pick the Americans), use smaller car!!! Leave your 4WD in the dealer! There are too many superstitious believe (basicaly pride) that bigger is better.
2. Drive efficiently. For example: click here
3. Be healthy. If it’s not necessary, then don’t drive, walk, bike, etc
Bleu and Rusdy have given clever ways to reduce gasoline price. And check out the link that Rusdy provided us.
Basically, they emphasized that the customers were the ones who should control themselves. At the end, it will affect demand and supply equilibrium where the demand is low, the suppliers will decrease the price.
I think beside that substitute product is a must. Ethanol and solar or wind energy are probably are among the options. So far Brazil has successfully utilized ethanol. The area that is close to where I live, Altamont Pass, CA, know for its one of the largest wind mills in the world. That’s why, the energy bill quite low, about 50% lower compared to other city.
Bleu and Rusdy, thank you for your very useful comments.
Hello
Great book. I just want to say what a fantastic thing you are doing! Good luck!
Bye