2 ms·
>a single company does not have a real choice to sell for cheap. First everyone would choose this vendor for their oil needs. But as their stock and production
by hinata08 4y ago
>a single company does not have a real choice to sell for cheap. First everyone would choose this vendor for their oil needs. But as their stock and production is limited, they would soon run out of oil to sell.
that's exactly a publicity stunt that made Total, in France, for a few weeks after their huge profits hit the news.
It turned out to be beneficial for them :
It improved their image among citizens. And they avoided that tax on extra profits, that BP will have to pay in the UK.
They even had news credit for this. After that stunt, they could go to the media and show everything they were 'doing' for industries, consumers, and investments against climate change.
Now the gas is back to expensive levels. But voters got gradually used to it, demand didn't break, and Total still dodged the tax and escaped more regulation.
BP used high oil prices to do stock buyback, Total used it to build their image as a 'socially responsible' and stable company.
(Btw, the shortage of fuel happened during strikes and other defiance on the government. So Total got away with being dry some of the time. The government somehow ended up being blamed for that.)
Now choose where you want to invest. It's fully up to your strategy.