Socialism Hits Kentucky Town Hard

[LAGC]

Businesses in a small Kentucky town are crying “socialism” after the mayor got tired of constant price gouging and opened a city-owned gas station.

According to The Associated Press, the Somerset Fuel Center was a hit with consumers when it opened on Saturday. It served 75 customers in the first three hours, and has been averaging about 300 fill-ups per day ever since.

Mayor Eddie Girdler said that residents of Somerset, which is a tourist destination, had complained for years about high gas prices, which the town estimated were 20 to 30 cents higher per gallon than surrounding cities.

So for less the $75,000, the city was able to open the fueling center, with 10 pumps and no frills. The station doesn’t sell snacks or do repairs.

While the mayor expected to break even on the operation, he said that the goal was to lower the overall price of gas in Somerset. And it seems to be working. Nearby stations had already cut prices by 10 cents.

http://www.rawstory.com/rs/2014/07/2...n-gas-station/

Hey, if you're gonna price-gouge consumers, don't cry over spilled milk when the "evil gubermint" steps in to level the playing field.

Truth is, the entire petroleum industry ought to be nationalized. Eliminating those obscene profits from the equation would bring fuel prices down real quick.

[chiak47]

Fuck socialism.

[LAGC]

Fuck socialism.

Tell me about it! Why should people think they are entitled to getting cheaper gas? Who do they think they are?

I mean, if the "free market" allows for a 30¢/gallon price-gouging, consumers need to just pony up and stop complaining, am I right?



Sheesh. The nerve of these people...

[imanaknut]

I wonder what the price of gasoline would be in a true free market? One without EPA, OSHA, DOT, and other alphabet soup agency restraints might bring gas prices down but how many would die of resulting carelessness?

[Sherman]

So for less the $75,000 the city built a gas station and bought the fuel for it using tax payer money so they could provide lower priced gasoline for the city's tax payers.
The people that are buying the fuel are paying twice the amount. Once when the tax dollars buy it for the gas station and when they buy it at the pump to put in their automobiles.

[l921428x]

damn Sherman don't tell them that! they might start to think.

[chiak47]

So for less the $75,000 the city built a gas station and bought the fuel for it using tax payer money so they could provide lower priced gasoline for the city's tax payers.
The people that are buying the fuel are paying twice the amount. Once when the tax dollars buy it for the gas station and when they buy it at the pump to put in their automobiles.

Shut up with your logic, young comrade lefty was schooling us on how grand socialism is.

[ready]

That's why he's a moron. He thinks govt money is free money. I guess it is when you don't contribute shit to society.

[Schuetzenman]

The city doesn't have to make a profit since they use other people's money to run their business. As it has been said, it works great until they run out of everyone else money.



Greedy oil companies...

This!

[Schuetzenman]

That's why he's a moron. He thinks govt money is free money. I guess it is when you don't contribute shit to society.

And This as well!

[LAGC]

Do Oil Companies Earn Just 7 Cents on a Gallon of Gas?

http://www.factcheck.org/2011/05/pla...soline-prices/

...the 7-cents-per-gallon figure grossly underestimates the industry's earnings. It includes only earnings from the sale of gasoline and not earnings on producing and selling crude oil. There are no independent figures on how much oil companies earn on a gallon of gasoline.
..
..
We called ExxonMobil and asked how Cohen arrived at his figure. Spokeswoman Kristen Hellmer said it was determined by dividing ExxonMobil's "downstream earnings ($694 million) by the number of gallons of gasoline and other products refined and sold during the quarter in the U.S. (9,355 million gallons). The result is 7.4 cents per gallon." Downstream earnings are what the company earns from refining crude oil into gasoline and other petroleum products and then selling it. But that ignores "upstream earnings," which is how much Exxon earns in producing and selling crude oil. And the cost of oil exceeded $100 a barrel in the first quarter of 2011.

Oil industry analyst Kloza called the 7-cents-per-gallon figure "disingenuous," because it ignores high earnings from oil production. "Bringing crude oil to market has been incredibly profitable," Kloza said. "It is disingenuous to say in the downstream we are making only this much."

ExxonMobil reported that its upstream earnings were $8.7 billion in the first quarter — up $2.9 billion, or 49 percent, compared with a year ago. As of August 2010, it was the third largest oil refiner in the U.S.

In a February 2011 report called "What's Up with Gas Prices?" the American Petroleum Institute reported that on average oil and gas companies earned about "6 cents for every dollar of sales" — not every gallon — in the third quarter of 2010. Rayola Dougher, API’s senior economist, said she arrived at that figure by dividing net income by total revenues for about two dozen integrated oil companies and independent producers. By her unofficial calculations, Dougher said, the average so far in the first quarter of this year is 7.6 cents per dollar of sales. “If you are a producer and getting more money for a barrel your profits go up,” she said.

[LAGC]

And from that original article, it sounds as if the operation is going to break even within the first year.

Taxpayers aren't on the hook for anything, but everyone gets to enjoy 30¢/gallon cheaper gas.

Sounds like a win-win situation to me.

[miketx]

And from that original article, it sounds as if the operation is going to break even within the first year.

Taxpayers aren't on the hook for anything, but everyone gets to enjoy 30¢/gallon cheaper gas.

Sounds like a win-win situation to me.

Dear Mr. commie, the tax payers paid for it. What part of that don't you....nevermind, I forgot. You don't have a clue where the government gets its money.

[LAGC]

Dear Mr. commie, the tax payers paid for it. What part of that don't you....nevermind, I forgot. You don't have a clue where the government gets its money.

It sounds like the funding for this project was already levied by local city taxes, and the operation is paying for itself, paying back the entire $75,000 investment.

Now I guess you could argue that the city could have just refunded that the taxpayers that money instead (a few measly bucks per household or whatever), but all things being equal, I have a feeling the locals there prefer the much cheaper gas.

[skorpion]

Trying to teach a liberal logic is like teaching calculus to a dog turd.

[El Jefe]

This is one of the more idiotic trolling attempts I've seen in a while.

How fucking stupid do you have to be to think government can and would do anything better and or more efficient than the private sector?

[LAGC]

Saving $0.30 per gallon equates to maybe an extra $6.00 per fill up. That extra $6.00 keeps local businesses going and employees employed. Dot gov comes in and undercuts the local business and people become unemployed. Unemployed people file for unemployment and welfare. That's great. Now tell me again how those working at the "gouger gas stations" are supposed to make "a living wage" when the profits to do so are taken away by socialist .gov?

That's a fair argument. Indeed, one factor at play here is the fact that this new city-run gas station has no employees -- it's completely automated. So it employs no people, besides the trucker dude filling up the big tanks and the occasional hardware maintenance.

I really doubt it would lead to anyone being laid off though. Lots of people still visit convenience stores, just to pick up snacks or drinks. This city-run gas station isn't competing with that at all.

And remember: the city's goal here isn't to shutter down those private gas stations and convenience stores, just get them to quit gouging so much. They can still make a healthy profit, just not by overcharging for gas.

[LAGC]

How fucking stupid do you have to be to think government can and would do anything better and or more efficient than the private sector?

While that may indeed be true with most finite products or goods or services, when it comes to energy and dealing with people (hospitals, prisons, etc.) the private-sector is often lacking, as profits get in the way of providing service.

Sometimes a little bit of socialism is just what the doctor ordered -- not too much, just a little -- to keep capitalism's excesses in check.

[raxar]

So when is someone going to tell the resident bed-wetter that this isn't actually socialism?

[El Jefe]

While that may indeed be true with most finite products or goods or services, when it comes to energy and dealing with people (hospitals, prisons, etc.) the private-sector is often lacking, as profits get in the way of providing service.

Sometimes a little bit of socialism is just what the doctor ordered -- not too much, just a little -- to keep capitalism's excesses in check.

You couldn't have used a worse example than a hospital.

Government: VA

Private: St. Mary's