Most companies I ever worked for did the same, in particular the ones in the oil&gas sector. Any increase in crude or taxes would immediately be passed down to the consumer. Any decrease and they'd be issuing a press release stating that "the markets don't respond so quickly to price fluctuations".
It works best in industries with no real competition because of the high barrier of entry, and with a common interest between the players to keep the practice going, even when there's no explicit collusion or cartel forming.
It works best in industries with no real competition because of the high barrier of entry, and with a common interest between the players to keep the practice going, even when there's no explicit collusion or cartel forming.