Nation of Change - Earlier this month, the small city of Somerset, Kentucky, .... opened a municipally owned and operated fuel center in an effort to drive down gas prices for local residents. As a result of its proximity to Lake Cumberland, a popular tourist destination, the city of 11,000 residents has long struggled with high fuel prices—especially during the summer months between Memorial Day and Labor Day.
Under the leadership of Republican Mayor Eddie Girdler, the conservative-leaning city purchased a fuel storage facility for $200,000 and spent $75,000 building the infrastructure to distribute gasoline to the public—including the installation of 10 pumps. The city now purchases gas from a local supplier (Continental Refining Company) and uses city employees who rotate in from other departments to operate the station.
In a city where gas prices at private stations can spike 20 to 30 cents a gallon on weekends, the public station will not aim to turn a profit. Rather the mayor’s office intends to set prices in a way that the city breaks even on the cost of fuel plus operating expenses. However, an additional goal is to provide an incentive for motorists on their way to Lake Cumberland to stop in Somerset to refuel, thus generating additional business for—and greater tax revenues from—the city’s restaurants, shops, and other small businesses.
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