NORTH ADAMS, Mass. -- A North Adams, Mass., resident, Vincent Melito, is proposing a purchasing cooperative to bring down gasoline prices, reported iBerkshires.com. Melito was looking for 100 motorists willing to pledge to buy from one local gas station that would, in turn, lower its price per gallon by 2 cents. He hit that mark within two days of his proposal appearing in the local paper, said the report.
"People are asking Congress to do something, but we can do something here on the home front," the former city councilor told the news outlet. "It's just an idea. I'm trying to take some [image-nocss] proactive action for the community."
All the details haven't been worked out yet, but co-op members would be given a card or some type of identification to show the clerk, the report said.
So why would a gas station owner be willing to cut 2 cents off his prices, asked the website? Because Melito's proposal takes credit and debit card fees out of play and draws consumers into the convenience store attached to the gas station, which is often more profitable than the gasoline, it said. The assumption is that motorists would pay in cash, making it worthwhile for the station owner; they would also have to enter the store to pay, creating foot traffic.
Melito said he had spoken with the owner of a local Getty station after mulling the idea over a few weeks ago. He had seen how cooperative buying could be beneficial as a Peace Corps volunteer in his youth, said the report. The Getty owner was willing if he could come up with the 100 customers.
"There's no obligation to go to him," Melito told iBerkshires, but co-op members who do would be guaranteed the two cents off. That could actually translate into savings of 10 cents or more compared to other stations; it could also force stations to reduce their prices, the report speculated.
Melito needed the 100 members by June 1; the cooperative will operate during the summer to see how it goes.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.