Greedy Oil Companies Cause Petrol Station Strike in Italy

[The Oil Baron]

Italian petrol stations began a 60-hour strike late on Tuesday to protest against rising costs and falling profits.

Weak consumer spending has been a key factor in Italy's sluggish economy, which has been dipping in and out of recession since 2008.

In a joint statement, unions said they called the strike to combat "a true aggression against the roughly 24,000 small businesses and 120,000 workers in the sector".
They say oil companies have forced stations to absorb the costs of discounting campaigns, allowing them a profit of just one euro for every 100 euros ($130) or 55 litres of petrol sold.

[The Hulk]

It is interesting to know that petrol station owners make so little profit. Where is all the money going then?

Well I suppose it is obvious when you note that oil companies are posting record profits, but why is this allowed? Why are they allowed to hike up the costs of oil so that they can post record profits, meaning that our gasoline prices are up near record levels, and all the time other people in the gasoline supply chain are struggling to make money.

I support this strike. I hope that they force the oil majors to reduce their prices. Whilst it may not affect me as an end user, I don't like to see rich, powerful companies exploiting the smaller guy.

[Alan]

Who says the oil companies are greedy? they are trying to turn a profit by providing goods, like all other businesses. The problem comes in the pollution that their products spew out all over the world . They need $500 million a year just to pay for the TV advertising that denies the problem, and it's been partially successful .

[Seabastian.Smith]

Oil Companies are greedy for the fact that they are experiencing record profits, yet at the same time still forcing incredibly low profit margins on petrol station owner. If oil companies are earning big, then all other parts of the supply chain from resource extraction up to sale of end product should be doing well as well.

[KitemanSA]

So, raise your prices at the pump.

[Tom Hitchcock]

hahaha good idea! it is the logical solution. I assume however, that there is some price ceiling enforced by the government. I will look into that.

[KitemanSA]

So is it the greedy oil company's or the stupid government's fault?

[The Hulk]

If indeed the government has set a price ceiling, then it may be because higher prices would cause civil unrest and riots, the Italians are a firey lot, especially at the moment with the severe economic problems that the country is facing.

I assume the petrol station owners know who's fault it is that they are earning such low profit margins, and that they are protesting against the correct group, not just a randomly selected one.

[KitemanSA]

I'm not sure I agree. As you point out, the Italians are a fiery lot, and not known for making the best of decisions. Big bad oil is the villain du-jour, so the EASY target, not necessarily the correct one.