By Tony Huppert, CEO, Team Oil Inc.
I’ve been following the ‘Socialized Retail Gas Concept’ in Somerset Ky.
Using an existing city-owned filling station and a nearby refinery to supply it, officials of Somerset recently decided to serve residents by going into the gas business themselves. Somerset City Council this past June voted 10-0 in favor of an ordinance authorizing the city to sell regular (87 octane) gasoline.
The Somerset Fuel Center began selling gas to motorists July 19. The unusual move occurred after long-term complaints from residents about higher gas prices in their town compared to surrounding towns.
When the Somerset City board feels the refinery is charging too much for wholesale gas, will the board vote for a public refinery?
On another note, I wonder if it is legal for the board to take tax dollars generated from all its residents to subsidize the benefit of a few. The tax dollars spent on the city utilities, schools, police and fire protection, benefit the entire community, not just a select few. If this socialized gas station concept is challenged in court, by Somerset’s tax paying residents or others, the city of Somerset will be spending the resident’s tax revenues to defend the board’s decision to benefit a few, with the tax revenues of all.
I think the question should ‘Not’ be, “If it is right or wrong” or “Ethical or Not Ethical,” but “Is it legal”?
For more on the Somerset gas station: http://cstoredecisions.com/2014/08/05/kentucky-town-fuels-debate/
Tony Huppert is a Wisconsin businessman of 40 years and CEO of Team Oil Inc., the family-owned and operated Team Oil Travel Center, and Subway in Spring Valley, Wis.