Quote:
Originally Posted by marketsmart
This is not the case in Mexico.. The Mexican govt subsidizes the price of gas...
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Actually, there is only one gasoline company in Mexico. And it is coming up for a vote whether it will be privatized. Figure, a few years back there was only one phone company here too, Telmex. They privatized that, and prices went down on phone service. But with all of the ads running on TV down here, it's doubtful that gas will be privatized. If something else I said was wrong, that's possible. But the Pemex thing I do have a pretty good grip on. Besides, it would be nice to see a Texaco, Chevron, Shell, something like that down here. I get homesick sometimes. Back on the subject...
High Supply + Low Demand = Low prices
Low Supply + High Demand = High Prices
Monopoly = High Prices
(I remember seeing a documentary on Youtube I think, about diamond prices. Diamonds are actually very common, but there is a monopoly on them, and the stones are only sold in small quantities. That is what caused the illegal market for them, the blood diamonds. The "legitimate" diamond market is cornered by De Beers.) I am all for competition.