May. 2nd, 2008

mbarker: (Burp)
Fascinating month. As I understand it, last month, gas prices dropped here in Japan because the government couldn't agree on extending the taxes. So they took 25 yen per liter taxes off the price, dropping the price an average 20 yen (according to reports, and my own eyeballing). That's the first step.
Disgusting details hidden )
That's actually pretty good business. Take 25 yen off, but only pass 20 yen savings to the customer -- it still feels like a significant savings to the customer, even though you've raised the price 5 yen. Then add back the 25 yen, and increase the price to the customer by 30 yen -- now the customer is enraged, but blames it on the government, not the poor gas company. Slick! Caught us coming and going.

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