Price support laws for Gasoline ?

[uscitizen]

Gas Station Owner Told to Raise Prices

MERRILL, Wis. (AP) -- A service station that offered discounted gas to senior citizens and people supporting youth sports has been ordered by the state to raise its prices.

Center City BP owner Raj Bhandari has been offering senior citizens a 2 cent per gallon price break and discount cards that let sports boosters pay 3 cents less per gallon.

But the state Department of Agriculture, Trade and Consumer Protection says those deals violate Wisconsin's Unfair Sales Act, which requires stations to sell gas for about 9.2 percent more than the wholesale price.

Bhandari said he received a letter from the state auditor last month saying the state would sue him if he did not raise his prices. The state could penalize him for each discounted gallon he sold, with the fine determined by a judge.

http://hosted.ap.org/dynamic/stories/O/ODD_CHEAP_GAS?SITE=KYWIN&SECTION=STRANGE&TEMPLATE=DEFAULT

 

[leaningright]

Heard this on the radio this morning, both the local DJ and Paul Harvey. I can't see why such a law would have ever been passed. If I wanted to sell gas for a penny profit I should be able to.

 

[uscitizen]

Yep, just not below cost.

 

[Damocles]

The law protects from people raising prices inordinately during crisis periods.

 

[OrnotBitwise]

The law protects from people raising prices inordinately during crisis periods.

If that is indeed the intent then the law is poorly worded. It should establish only an upper limit.

 

[Damocles]

If that is indeed the intent then the law is poorly worded. It should establish only an upper limit.

I agree. I am reasonably sure that they passed the law after a crisis where some people raised the prices, maybe 9/11. Remember some places had like $5 gas afterward?

It seems to me that this is a matter of enforcing the letter of the law and not the spirit.

 

[Cypress]

Gas Station Owner Told to Raise Prices

MERRILL, Wis. (AP) -- A service station that offered discounted gas to senior citizens and people supporting youth sports has been ordered by the state to raise its prices.

Center City BP owner Raj Bhandari has been offering senior citizens a 2 cent per gallon price break and discount cards that let sports boosters pay 3 cents less per gallon.

But the state Department of Agriculture, Trade and Consumer Protection says those deals violate Wisconsin's Unfair Sales Act, which requires stations to sell gas for about 9.2 percent more than the wholesale price.

Bhandari said he received a letter from the state auditor last month saying the state would sue him if he did not raise his prices. The state could penalize him for each discounted gallon he sold, with the fine determined by a judge.

http://hosted.ap.org/dynamic/stories/O/ODD_CHEAP_GAS?SITE=KYWIN&SECTION=STRANGE&TEMPLATE=DEFAULT

Weird.

I can only speculate that this somehow pertains to anti-monopoly and anti-trust laws. It would be quite easy for an ExxonMobil or a Chevron to open a station across the street from a Mom and Pop gas station, and then drop their prices below profitability for as long as they needed to, to drive Mom and Pop out of business. They could totally outlast Mom and Pop, by selling at prices that were unprofitable.

 

[Cancel7]

Gas Station Owner Told to Raise Prices

MERRILL, Wis. (AP) -- A service station that offered discounted gas to senior citizens and people supporting youth sports has been ordered by the state to raise its prices.

Center City BP owner Raj Bhandari has been offering senior citizens a 2 cent per gallon price break and discount cards that let sports boosters pay 3 cents less per gallon.

But the state Department of Agriculture, Trade and Consumer Protection says those deals violate Wisconsin's Unfair Sales Act, which requires stations to sell gas for about 9.2 percent more than the wholesale price.

Bhandari said he received a letter from the state auditor last month saying the state would sue him if he did not raise his prices. The state could penalize him for each discounted gallon he sold, with the fine determined by a judge.

http://hosted.ap.org/dynamic/stories/O/ODD_CHEAP_GAS?SITE=KYWIN&SECTION=STRANGE&TEMPLATE=DEFAULT

usc, I don't know what you're doing, but you are getting better looking every day.

 

[Damocles]

Weird.

I can only speculate that this somehow pertains to anti-monopoly and anti-trust laws. It would be quite easy for an ExxonMobil or a Chevron to open a station across the street from a Mom and Pop gas station, and then drop their prices below profitability for as long as they needed to, to drive Mom and Pop out of business. They could totally outlast Mom and Pop, by selling at prices that were unprofitable.

I could see this. But large gas stations rarely consider the mom and pop stores competition.

It may have come about when there were price wars back in the day as well.

I can see several reasons for this other than protection from the upward trend.

 

[Cypress]

I could see this. But large gas stations rarely consider the mom and pop stores competition.

It may have come about when there were price wars back in the day as well.

I can see several reasons for this other than protection from the upward trend.

But large gas stations rarely consider the mom and pop stores competition.


Well, that was just a metaphor. An Exxon franchised gas station could also drive a small, regional indepedent gas station out of business, by undercutting them on price and selling below profit. Exxon could totally outlast any small, regional retailer in a battle of price undercutting.

 

[Damocles]

But large gas stations rarely consider the mom and pop stores competition.


Well, that was just a metaphor. An Exxon franchised gas station could also drive a small, regional indepedent gas station out of business, by undercutting them on price and selling below profit. Exxon could totally outlast any small, regional retailer in a battle of price undercutting.

Yeah, that's why I went on with the thread of thought.

At first I was having difficulty believing that they thought it through all the way. Now I think they might have.

 

[uscitizen]

usc, I don't know what you're doing, but you are getting better looking every day.

I am workin on it
Perhaps less bad would be better wording ?

 

[uscitizen]

Yeah, that's why I went on with the thread of thought.

At first I was having difficulty believing that they thought it through all the way. Now I think they might have.

Probably a holdover from when we actually had competition selling gas. anyone remember gas wars ?

 

[Topspin]

Gas wars will be back with a vengance.
Saw a poll that said most Americans expect $4gal gas this year.
Guess where it's going. LOFL

Once over 4 you'll see some heated competition.
Now $5 that's much more interesting

 

[uscitizen]

Well technically Iraq is a gas war I suppose....although it will be years before it is officially viewed as the first gas / oil war of a series.

 

[Battleborne]

Probably a holdover from when we actually had competition selling gas. anyone remember gas wars ?

I do...since I grew up during the sixtees...I remember gas at .15-.18 cents per gallon during the wars...damn do I miss the old days...muscle cars rocked...

As for the thread...well oil companies are raping the general public...if someone in the world stubs their toe...walla a crisis and prices soar! It is pure greed not a crisis that dictates fuel prices...and also everything else goes up from milk to cookies...what is really scary now is that oil companies are investing in 'Water Rights' it won't be long before 'Water Wars' replace oil wars!( 1 bath per week for the general public)
We are headed for 'Range Wars' of the 1870's...

 

[Cancel7]

I do...since I grew up during the sixtees...I remember gas at .15-.18 cents per gallon during the wars...damn do I miss the old days...muscle cars rocked...

As for the thread...well oil companies are raping the general public...if someone in the world stubs their toe...walla a crisis and prices soar! It is pure greed not a crisis that dictates fuel prices...and also everything else goes up from milk to cookies...what is really scary now is that oil companies are investing in 'Water Rights' it won't be long before 'Water Wars' replace oil wars!( 1 bath per week for the general public)
We are headed for 'Range Wars' of the 1870's...

Congratulations Battle! You've managed to compile an entire post...in English!

 

[OrnotBitwise]

I do...since I grew up during the sixtees...I remember gas at .15-.18 cents per gallon during the wars...damn do I miss the old days...muscle cars rocked...

As for the thread...well oil companies are raping the general public...if someone in the world stubs their toe...walla a crisis and prices soar! It is pure greed not a crisis that dictates fuel prices...and also everything else goes up from milk to cookies...what is really scary now is that oil companies are investing in 'Water Rights' it won't be long before 'Water Wars' replace oil wars!( 1 bath per week for the general public)
We are headed for 'Range Wars' of the 1870's...

We westerners are more aware of the water problem than easterners are. That's 'cause we're going to be in trouble long before they will, naturally.

 

[OrnotBitwise]

I am workin on it
Perhaps less bad would be better wording ?

Could be worse. Cypress' new look is going to cause someone to pop a gasket someday, I betcha.

 

[Battleborne]

Hummm...

Congratulations Battle! You've managed to compile an entire post...in English!

Not really, just that you probably agree with what I said...I do not post serious posts all the time...I like to mess with elitist heads from time to time!