Petrol retailers no collusion

The front page news of thenewpaper on 20Dec has this headline, ‘No collusion between petrol retailers’. The Competition Commission of Singapore, after doing its ground work, has found that there is no collusion among the petrol retailers in pricing petrol. Is this really news? With only a handful of petrol brands, and knowing that the CCS is watching against pricing fixing and cartel, would the retailers be so stupid as to engage in price fixing? These are smart business people and the last thing they want to do is to be caught with their pants down. There is absolutely no price collusion even if their prices are about the same and still making big profits. They know what they are doing, to be competitive, to be within the laws, and to make their huge profits in a free market.

Actually the industry that is really free from collusion, definitely more free than the petrol industry, is the stock broking industry. Every brokerage is allowed to fix its commission until they are broke. They compete fiercely with each other, to under cut each other, to gain market share. Some are even willing to go as far as doing it for free. This is really a free market that is completely free from collusion and trading can also be free of commission. The last was what I heard, not sure got such madness or not.

Not sure they are clever or stupid. Calling them stupid they would be very angry. So let’s assume that they are very clever people and doing all the right things to gain market share and to do more business and hopefully the end result is more revenue and profits.

The reality in the ground is that they are running each other down and one by one is going to fold up with high cost, rising cost and low revenue due to very thin commission. This is like the saying, high living low thinking. And to be sure, they still believe they are doing the right thing. Never mind that profit is so thin, never mind that the profit is not enough to feed the business. Never mind if it is loss making. The important thing is to compete fiercely for business, to gain market share man. If you don’t cut your commission the other idiot would do so. Oops, should be the other genius.

I dunno what to say. Just look at the industry and watch which broking house is the first to fold up.


Anonymous said...

When they say no collusion means no collusion. When they say there is collusion, like the appointment of cleaning agent in AHTC, there is collusion. It depends on who they are referring to.

Do you also believe there are no collusion among bankers, goldsmiths, coffeeshop owners, taxi-operators among others? What are collective associations formed by these people for? To protect customers and consumers from them?

Behind close doors, they are all brothers. They compete outwardly, but some actually belong to the same majority owners. Again, I will say left hand checking right hand and ownself praising ownself for tranparency.

Anonymous said...

Why does a government body whose sole purpose is to ensure the citizens are not short-changed, blackmailed, intimidated or swindled by big business corporations, corporate and defend such business organizations?

Think deeply.

Anonymous said...

Spore is the biggest oil refinery center in Asia for donkey years. Yet petrol prices one of the highest for consumers. Some million dollar paid goondu locked in natural gas contracts at near record premiums for donkey years. Jinx goondu sold near monopolistic power stations away at low prices. Sold sole monopoly steel company at low price all in the name of non-core. Dont even know the difference beteeen core & strategic national assets. Thank God for Fukushima if not nuclear station would have been built & with this level of Smrt incompetence, total disaster impending for Sinkies. Pampered paper scholars million dollars paid pubic servants are a giant disservice & HoLee Jinx to Spore, having changed the culture of the once rock solid civil service. Golden peanuts kill & destroy even very high IQ monkeys.

Anonymous said...

U all really don't know Sg meh?

U only just came here yesterday?

Wake-up! Sg is like that liao lah!

U die your business!

This is Sg! This is Sg!

So,,,,,,,Be happy and worry less!


Goh said...

If we think water can replace petrol then go fill water instead of petrol.
Justifiable for increase.
Pump attendent uncles need a reasonable salary too.
Garmen never say must own a car.

Anonymous said...

agongkia 1001am

You sincerely think companies will reward the uncles and aunties
higher salaries and bonuses?


Sorry,,,,in this pee sai,,,,

The top takes the cream,,,,the bottom takes the sai!


Goh said...

Consumers willing to pay so employers have a chance to increase their staff wages.
Consumers kiamsiapkwee towkay no chance to increase.
Rich only know how to complain about expensive petrol but never think of the service by kiosk attendant .
Go ride bicycle lah:-)

Anonymous said...

"Do you also believe there are no collusion among bankers, goldsmiths, coffeeshop owners, taxi-operators among others? What are collective associations formed by these people for? To protect customers and consumers from them? "

These people come together to play mar jon, not talking about market price setting. How about donations to "institutions"? Need to talk correct?

In sinkieland, one has to look at who are sitting on what institutions in order to place trust on the results as "objective". North Korea also has market priced petrol. When Russia flood oil in NK, the market price plummeted. Not so for sinkieland which has no sanctions.

Sinkieland is sinking sampan. Look at HK, its rival, are giving cheap water and no coe cars to run on limited lands. HK now has 8.25% corporate tax to fight Sinkieland. Sinkies can expect its sampan sinking much faster. Tranport as total cost will be passed to export and retail prices.

The whole issue about the subject discussion is how much trust sinkies place on public institutions to implement uncontrolled market price.

The world is no longer controlled by fear. Not to react fast to knock at sinkies doors after mid night. It is harder to do so, just as a reminder.

One Punjabi woman wrote to UN hundred and ninety plus members stating Trump want to take down names voting to condemn US support Jerusalem as Israel s capital.

The result: 128 support to condemn US, 9 include US against, 21 did not vote.

Many are worried if sinkieland belonged to 9 or 128. It surprised common men to choose 128.

It is time to work for Sinkieland s future by voting in political parties to survive this shaky place. Sinkieland needs emerging markets like China and not so much the ang mor countries.

If sinkies keep voting for party only know how to tax its own citizens, take their cpf to gamble in shares, give foreigners PR to extract good paying jobs from citizens, and forcing citizens to do ns as so good pocket money. It is frustrating to be citizens.

How much can citizen trust the politicians is not dependent on citizens. It is dependent on the politicians to do their fair share of jobs with so much salaries guarantee to pay to them.

Virgo49 said...

Free Competition? ?

Seeking feedback from the Public.

DONT wayang lah! No competition only in Government to give whatsoever price they gave to Sinkies.

After so many many years of being sucked dry with their support of what's rulings, now they knew that Sinkies pulling purse strings and their businesses hurt, they wayang wayang free markets.

The Motor Agencies now no longer had a hold that you must repair their vehicles at their workshops.

The crude oil dropped drastically at one time and you see any drop of our Petrol prices? ?

The PAP just like the housing agents and paper for monies insurance agents would want your whatever prices to be higher and higher so that they can tax more.

Free markets and you required Singaporean cars to be three quarters full to get out of Singapore.

This, not protectionism. ???

Temasick had joint ventures farms in Batan and youdisallowed meat not to be allowed into Sinkieland from Matland.

This free markets??

All these petroleum companies in cartel just like OPEC to fix their prices.

Don't bullshits Free markets.

HDB monopoly to build at demand prices to Jack up the prices.

Not as a responsible government to build housing for her people.

Only daft Sinkies believe in them.

b said...

Politicians always lie. Thats their job so you stay as milk cows. Let the people eat crumbs and they eat cakes. Thats their motto.

Anonymous said...

Politicians advise you to eat frozen fish when they themselves eat fresh fish.

Politicians advise you to send your children to ITE when they themselves send their own children to prestigious universities overseas.

Politicians advise you to take public transport when they themselves drive nice cars.

Anonymous said...

Politicians are usually lawyers. Politicians are usually not social workers.