Government Soshulism Hits A Kentucky Town

[finnbow]

Originally Posted by donquixote99

It's my belief that the gas companies play rather sophisticated games with gas prices, jack them up sometimes, down sometimes, from place to place, keeping the average up but having enough down phases to keep people from getting too pissed. Note the quote from the petroleum association, in the story, saying the price in the town is 'low sometimes....'

Price also seems to vary depending on demand elasticity in particular areas.

I'm fine with the city throwing a bit of a monkey wrench into all this. Now using tax subsidies to sell below wholesale would be a bit different....

Can't argue with that.

[BlueStreak]

Originally Posted by donquixote99

It's my belief that the gas companies play rather sophisticated games with gas prices, jack them up sometimes, down sometimes, from place to place, keeping the average up but having enough down phases to keep people from getting too pissed. Note the quote from the petroleum association, in the story, saying the price in the town is 'low sometimes....'

Price also seems to vary depending on demand elasticity in particular areas.

I'm fine with the city throwing a bit of a monkey wrench into all this. Now using tax subsidies to sell below wholesale would be a bit different....

I'm thinking this is precisely what it is. "Free Market" my arse.

Dave

[donquixote99]

Regarding 'price inelasticity.' My bad--should have said 'demand inelasticity.' Basically means that means the price will be higher in a town of well-paid commuters. Or in a tourist town. The visitors have to get home, after all.

Ever notice how the price is higher in the places right on the interstate?

[BlueStreak]

"The venture unnerved local filling station and convenience store operators suddenly competing with the city in this Republican stronghold. Critics said the government has no business injecting itself into the private sector, and one store owner branded it as so(c)ialism."

Of course they hate it, they are being undercut and they know that once people start to like not having to pay for their profit margin and marked up overhead, they will lose.

Let's face it, it is So(c)ialism. And, in this case, the only way they will kill it is politically because they cannot compete with it economically. Few people are going to continue paying $3.80 - $4.00/gallon if they can get it anywhere for $3.35..........................

Dave

[donquixote99]

Hell and Limbaugh are going to descend on this town.

[Oerets]

http://www.wdrb.com/story/20969510/g...must-stop-2513

""The answer can be summed up in one word: Monopoly. Marathon Oil has a virtual total monopoly over wholesale gasoline distribution throughout the state, and whenever they decide to hike the price by a nickel, or a dime – or fifty cents – they have no competitors who might take business from them by offering a better price.""

The Derby has some of the highest prices in the state.

The city is just trying to level the playing field and make a point.

Barney

[Rajoo]

I have been using a commercial company (Pacific Pride) and their stations are unattended and open 24/7. Some are attached to retail gas stations but the pumps are separate. Prices are not marked in the commercial stations though.

[Pio1980]

Originally Posted by Dondilion

That does not make competition from a government owned business ok.

I'm perfectly OK with it for basic universal health care if it's a service and not a for-profit enterprize.

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[Dondilion]

Originally Posted by Pio1980

I'm perfectly OK with it for basic universal health care if it's a service and not a for-profit enterprize.

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Agreed!

[Tom Joad]

I doubt they can sell for more than a few cents less if that.

Retailers make almost nothing on gas sales.

It's the big oil companies that are raking in the big bucks in profits.

Of course they'll cry poor and say they only have an 8% profit margin, but 8% of a $4.00 gallon of gas is 32 cents.

That's about 30 cents more than the 2 cents that the retailer makes.

And you gotta remember that that 8% in profits is what's left after they reward their top executives with billions of dollars in compensation.

Most gas is sold at convenience stores these days and It's practically a loss leader in order to get you in the store to buy a bag of corn chips and a 44 ounce thirst buster both of which have huge profit margins.

Where the government really needs to get involved is in providing Health Care.

We could be saving hundreds of billions a year there.