Price Based on the Market -Not the Cost

I wrote in a previous blog http://www.gregg.blog.is/blog/gregg/entry/892704/ about how the oil companies determine the price of fuel. I said I knew how they did this because it is the same way the company I worked for determined the price of milk. Not on the cost but on what the market will bear.  Olís tried to raise the price but the competition would not follow so they had no choice but to lower it again.  Just as I said we used to do with milk prices in the US.  This is nothing but a legal way of fixing the price within the market.  The oil companies need to do it this way since they got caught doing it the illegal way last time.  And I bet people are still going to but fuel from Olís tomorrow, so what do they care?

GTB

Olís lækkar lítrann aftur um 12,50 kr.