I'm pleased that Hertz is getting out of the gas gouging business. Maybe that field has just gotten too competitive lately. It's getting harder to shock Americans with preposterous gas prices. Rental car companies have been charging insane gas rates -- almost what you'd pay in Europe at the pump -- for years. Consumers think of it as their evil little profit center, like phone charges at hotels.

In a story at USAToday, the industry claims that it's only overcharging to scare people into bringing the car back full, so they don't have to hassle with storing the fuel and filling up cars. So why don't they charge that rate for prepaid gas? USAToday did a survey and found that rental car companies sold pre-paid gas at about $4 a gallon, but charged about $8 when someone returned the car less than full.

Continue reading Hertz giving up on fuel gouging, more rental car companies may follow

Hertz giving up on fuel gouging, more rental car companies may follow originally appeared on BloggingStocks on Wed, 18 Jun 2008 16:00:00 EST. Please see our terms for use of feeds.

This post is based on an article written by Alexander Green, Investment Director of The Oxford Club. My thanks to Mr. Green for his straightforward insight.

Let me begin by stating that my only argument against the oil industry has been their "the only game in town" attitude. Never have I complained that oil companies show too much profit. I have never accused the oil industry of gouging or unjust profiteering. With that stated, let us continue:

Oil companies DO NOT set gasoline prices at the pump. Those prices are dictated entirely by supply and demand economics. The single biggest driving force in the economics of crude oil today is the increasing demand by growing industrialized nations, China being the biggest by far. Even the United States Supreme Court declared that they find no evidence that oil companies are manipulating oil prices in any undue manner. This issue will, of course, remain in hot public debate.

Continue reading "Big oil" is not the problem: Alexander Green's perspective

"Big oil" is not the problem: Alexander Green's perspective originally appeared on BloggingStocks on Sun, 01 Apr 2007 10:10:00 EST. Please see our terms for use of feeds.

California government agencies will get a piece of the pie from Microsoft now that they've settled their price-gouging lawsuit with with the company.  Beneficiaries will include local school districts, regional transportation agencies and a wide variety of other state and local agencies that bought products from Microsoft starting in 1995.

The $70 million dollar settlement, if approved by the court, will be divided among the eligible government entities as they buy new computer hardware and software.  They don't have to buy the computer products from Microsoft. Competitor products can be bought with the money too.

This settlement is just a tiny portion of the money Microsoft spends each year as it settles its lawsuits. In fact, according to its 2005 annual report, as of June 20, 2005, Microsoft accrued liabilities totaling $2.661 billion for both current liabilities and long-term liabilities related to all its legal contingencies - and that's only the ones that have been settled.  There are lots of cases out there still winding their way through the courts.  Microsoft does not have to report expected legal costs from a lawsuit until there is a final court ruling after all appeals are exhausted or there is a settlement.

Continue reading Microsoft pays the price again -- this time to California government agencies

Microsoft pays the price again -- this time to California government agencies originally appeared on BloggingStocks on Wed, 03 May 2006 11:00:00 EST. Please see our terms for use of feeds.