Don't worry, we'll make it up in volume.....

[JustRalph]

http://www.theblaze.com/stories/2014/07/21/the-way-this-city-is-tackling-gas-prices-has-some-people-crying-socialism/

How in hell? How does this kind of crap actually come to be? Somebody has to pay?

Gas story.......

[Clocker]

It works fine until you run out of other peoples money.

[davew]

http://www.theblaze.com/stories/2014/07/21/the-way-this-city-is-tackling-gas-prices-has-some-people-crying-socialism/

How in hell? How does this kind of crap actually come to be? Somebody has to pay?

Gas story.......


selling at below market is not the same as below cost

[tucker6]

It will be interesting to see whether they can make it up in volume. There will be a built-in animosity from some constituents to having a govt do such a thing even if it benefits them. So there will be some price in-elasticity that hurts this business model. Personally, I think the other gas stations have a good case for suing the town by their use of gas station property taxes to then compete against said stations. That's wrong to me on several levels.

[HUSKER55]

that is wrong on sooo many levels.

[dartman51]

I personally, don't have a problem with that. Competition is a wonderful thing. My wife and I usually fill up at Kroeger, because we get varying amounts off, depending on how much groceries we buy in a month. Gas there is $3.21 right now. Less than a block down the street, a Phillips 66 station, has it for $3.29, at the Kangaroo, it is $3.19 and the Marathon is selling gas for $3.26. All of these are within 5 blocks of my house. Now, if the government decided to take over all the gas stations, I would definitely have a problem with that.

[tucker6]

I personally, don't have a problem with that. Competition is a wonderful thing. My wife and I usually fill up at Kroeger, because we get varying amounts off, depending on how much groceries we buy in a month. Gas there is $3.21 right now. Less than a block down the street, a Phillips 66 station, has it for $3.29, at the Kangaroo, it is $3.19 and the Marathon is selling gas for $3.26. All of these are within 5 blocks of my house. Now, if the government decided to take over all the gas stations, I would definitely have a problem with that.
How can you not have a problem with this? Let's say you own the Kangaroo gas station. Would you be okay with your local govt using your tax money to set up shop across the street and compete with you at lower prices? You would essentially be paying to have a competitor, and if those lower prices cannot pay the bills for the govt gas station, they can raise your taxes to cover the shortfall. How does one compete against that? I don't think you've thought this one through.

[Clocker]

"Gas stations" cannot make money selling gas at market prices. They can cover the cost of the gas, but not the overhead, including property taxes. That's why they sell soft drinks and cigarettes and the rest that keeps them in business.

At a minimum, the city is not paying property taxes. That is a subsidy, and it is a loss of income to the city, since someone else there would pay property taxes. And it hurts the other sellers that are paying their fair share.

[jballscalls]

I'm not gonna lie, I don't think I've ever considered gas price when deciding where to fill up. I just fill up wherever I'm at when I'm on low.

[Tom]

Aha, a stinking one percenter!

[BlueShoe]

I'm not gonna lie, I don't think I've ever considered gas price when deciding where to fill up. I just fill up wherever I'm at when I'm on low.
I am the exact opposite, the gas cost is the ONLY thing I consider. Rarely get so low that the fuel light is blinking, so not pressured to get gas right now. Not one bit brand loyal or choosey. In SoCal Arco usually but not always has the lowest prices since they do not accept credit cards. Use the GasBuddy website often for both local and when on a trip to locate best prices.

[JustRalph]

Great comments. The point that you are in competition with your own local government is a huge one. What if this was expanded to include groceries? You can see where this is a problem.

Now, look five years down the road. There will be no more non governmental gas stations left. Grocery prices will force you to buy from the government. Suddenly you realize how much power the government has over you.

Remember, any government powerful enough to give you a product at a subsidized price, also eventually controls those prices exclusively. Eventually they control the entire market for an item. Remember the bread lines in the Soviet Union in the 70's? You think there was any competition? Nope......

Government control of fuel supplies I find particularly dangerous