Students on sites like Facebook.com and Myspace.com are urging other students not to buy gas this tuesday in an attempt to shock gasoline companies. The campaign said if enough participate, gas prices will fall drastically overnight.
“I saw the thousands of people in the Facebook group,” said Ashley Bennett, Garnett sophomore. “I think this might actually work.”
The campaign is circulating much like a chain letter. The message says the Internet community has the potential keep 2.2 billion dollars from the oil companies. The campaign says a similar effort in April 1997 caused gas prices to drop 30 cents.
A counter-campaign, though, says the plan won’t work.
Students like Jake Meyer, Parkville, Mo. senior, said in the long run, the boycott will drive up the price of gas. He said unless people plan not to drive at all Tuesday, the gas companies will recoup the lost money Wednesday.
“It may cause a divot that day,” he said, “but demand will be that much higher on the sixteenth.”
Joe Sicilian, chair of the KU economics department, said it is very unlikely to be effective in reducing overall demand.
“If they really want to make an impact, they should ask for a reduction in consumption,” Sicilian said, “not a rescheduling of their purchase.”
The United States consumes more than twice as much gas as other industrialized nations, yet the average cost of per gallon is about half of what the rest of the world pays.Source: EIA
Despite doubts, students seem to be optimistic about the plan. On Facebook alone, more than 50 groups support the campaign. One group has more than 6,500 members. Several protest groups have emerged in response, but the majority of those groups have less than 1,000 members.
Bennett still plans to abstain from purchasing gas on Tuesday. She said she sees this as a political statement.
“Gas is at three dollars right now,” she said. “I’m willing to try anything to spice it up and scare people a bit.”
Bennett said she is unable to abstain from driving that day because she has to go to work, but she will make sure she is full the day before.
One online group against the boycott says the plan is nonsensical and that a little rationality would go a long way. The group says that overall, the campaign will put more money into oil company pockets by increasing demand.
Mary Adair, interim director and associate curator at the Natural History Museum, travels between Kansas City, Mo. and Lawrence every weekday. She says she is nervous about the rising price of gas, because during the summer she will not have the financial help of her carpool. Although she cannot avoid driving, she will stay away from the gas station Tuesday.
According to the EIA, gas prices in recent months have followed the same trends as last year. The current increase in gas prices may be due to seasonal fluctuations and not an increase in overall demand. Source: EIA
“It’s a statement,” Adair said, “but it is non-statement too, because I won’t use less gas. I have no option.”
Sicilian said individual retailers will notice the most, but the major suppliers may not at all. Oil companies sell the gas to the retailers who then sell it to the consumer. If a participant stocks up the day before or the day after, it won’t affect overall profit.
Rachel Gray, Blue Rapids junior, said that the campaign is useless.
“Gas prices go up every spring because more people need gas,” she said. “I am pretty sure enough people will need gas on that day that it will fail.”
With the scheduled gas out date drawing nearer, some students don’t know what to do. Greg Welnitz, Neosho Rapids junior, says he is confused by all the uproar.
“I have no idea whether to buy gas Tuesday or not,” he said throwing his hands in the air. “They both seem to have pretty good arguments.”
According to the Energy Information Administration, the increase in prices over the last few weeks is right on track for the spring season. In general, consumers can expect prices to increase in the spring as more people travel.