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Tuesday, September 11, 2007

petrol crisis

| Think about it ......... |
| |
| This is a rather lengthy story but if the concept is applied to the |
| petroleum industry en masse, it just may work. |
| |
| A man eats two eggs each morning for breakfast. When he goes to the |
| grocery store he pays 60 cents a dozen. Since a dozen eggs won't |
| last a week he normally buys two dozens at a time. One day while |
| buying eggs he notices that the price has risen to 72 cents. The |
| next time he buys groceries, eggs are 76 cents a dozen. |
| |
| When asked to explain the price of eggs the store owner says, "The |
| price has gone up and I have to raise my price accordingly". |
| |
| This store buys 100 dozen eggs a day. He checked around for a better |
| price and all the distributors have raised their prices. |
| |
| The distributors have begun to buy from the huge egg farms. The small |
| egg farms have been driven out of business. The huge egg farms sell |
| 100,000 dozen eggs a day to distributors. With no competition, they |
| can set the price as they see fit. The distributors then have to raise |
| their prices to the grocery stores. And on and on and on. |
| |
| As the man kept buying eggs the price kept going up. He saw the big |
| egg trucks delivering 100 dozen eggs each day. Nothing changed there. |
| He checked out the huge egg farms and found they were selling 100,000 |
| dozen eggs to the distributors daily. Nothing had changed but the |
| price of eggs. |
| |
| Then week before Thanksgiving the price of eggs shot up to $1.00 a |
| dozen. Again he asked the grocery owner why and was told, "Cakes and |
| baking for the holiday". The huge egg farmers know there will be a |
| lot of baking going on and more eggs will be used. Hence, the price of |
| eggs goes up. Expect the same thing at Christmas and other times when |
| family cooking, baking, etc. happen. |
| |
| This pattern continues until the price of eggs is 2.00 a dozen. The |
| man says, " There must be something we can do about the price of |
| eggs". |
| |
| He starts talking to all the people in his town and they decide to |
| stop buying eggs. This didn't work because everyone needed eggs. |
| |
| Finally, the man suggested only buying what you need. He ate 2 eggs a |
| day. On the way home from work he would stop at the grocery and buy |
| two eggs. Everyone in town started buying 2 or 3 eggs a day. |
| |
| The grocery store owner began complaining that he had too many eggs in |
| his cooler. He told the distributor that he didn't need any eggs. |
| Maybe wouldn't need any all week. |
| |
| The distributor had eggs piling up at his warehouse. He told the huge |
| egg farms that he didn't have any room for eggs would |
| |
| not need any for at least two weeks. |
| |
| At the egg farm, the chickens just kept on laying eggs. To relieve |
| the pressure, the huge egg farm told the distributor that they could |
| buy the eggs at a lower price. |
| |
| The distributor said, " I don't have the room for the %$&^*&% eggs |
| even if they were free". The distributor told the grocery store |
| owner that he would lower the price of the eggs if the store would |
| start buying again. |
| |
| The grocery store owner said, "I don't have room for more eggs. The |
| customers are only buying 2 or 3 eggs at a time. Now if you were to |
| drop the price of eggs back down to the original price, the customers |
| would start buying by the dozen again". |
| |
| The distributors sent that proposal to the huge egg farmers but the |
| egg farmers liked the price they were getting for their eggs but, |
| those chickens just kept on laying. Finally, the egg farmers lowered |
| the price of their eggs. But only a few cents. |
| |
| The customers still bought 2 or 3 eggs at a time. They said, "when the |
| price of eggs gets down to where it was before, we will start buying |
| by the dozen." |
| |
| Slowly the price of eggs started dropping. The distributors had to |
| slash their prices to make room for the eggs coming from the egg |
| farmers. |
| |
| The egg farmers cut their prices because the distributors wouldn't buy |
| at a higher price than they were selling eggs for. Anyway, they had |
| full warehouses and wouldn't need eggs for quite a while. |
| |
| And those chickens kept on laying. |
| |
| Eventually, the egg farmers cut their prices because they were |
| throwing away eggs they couldn't sell. |
| |
| The distributors started buying again because the eggs were priced to |
| where the stores could afford to sell them at the lower price. |
| |
| And the customers starting buying by the dozen again. |
| |
| Now, transpose this analogy to the gasoline industry. |
| |
| What if everyone only bought $10.00 worth of gas each time they pulled |
| to the pump? The dealer's tanks would stay semi full all the time. |
| The dealers wouldn't have room for the gas coming from the huge tank |
| farms. The tank farms wouldn't have room for the gas coming from the |
| refining plants. And the refining plants wouldn't have room for the |
| oil being off loaded from the huge tankers coming from the oil |
| fiends. |
| |
| Just $10.00 each time you buy gas. Don't fill it up. You may have to |
| stop for gas twice a week but, the price should come |
| |
| down. |
| |
| Think about it. |
| |
| As an added note...When I buy RM10.00 worth of gas that leaves my tank |
| a little under quarter full. The way prices are jumping around, you |
| can buy gas for RM2.65 a gallon and then the next morning it can be |
| RM2.15. If you have your tank full of RM2.65 gas you don't have room |
| for the RM2.15 gas. You might not understand the economics of only |
| buying two eggs at a time but, you can't buy cheaper gas if your tank |
| is full of the high priced stuff. |
| |
| Also, don't buy anything else at the gas station; don't give them any |
| more of your hard earned money than what you spend on gas, until the |
| prices come down..." |
| |
| |
| ..................please pass this concept around....reaching out to the |
| |
| mass..the world ...the universe |
|--------------------------------------------------------------------------|

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