Gas Station Chain Fined For Selling Gas Too Cheaply

[The Straight Story]

Gas Station Chain Fined For Selling Gas Too Cheaply

POSTED: 11:59 am EST February 27, 2006

ST. PAUL, Minn. -- The Minnesota Department of Commerce plans to fine a gas station chain for repeatedly selling gas below the state's legal minimum price.

The agency said it's fining Midwest Oil $140,000 for breaking a state formula based on wholesale prices, fees and taxes to determine a daily floor for gas prices.

Minnesota's price law was intended to prevent large oil companies from driving smaller competitors out of business -- but some critics argue it fails to protect consumers.

http://www.local6.com/automotive/7506221/detail.html

[htuttle]

1. In case anyone's wondering, there really is a good reason for this law

We have a similar one in Wisconsin. Back in the day, your corporate chain stations would lower the price below what the independent stations could buy it for (retail gas margins are typically very low). The independents would go out of business (especially if they were across the street), and the corporate stations would then jack the price way back up.

Same technique Walmart later perfected.

[RagingInMiami]

2. Man, I haven't seen an independent gas station

since back in the days when we were allowed to pump gas before paying.

[hootinholler]

3. I see it around here (Md.) with Sheetz.

They build a new store and undercut competition by a dime or so.

-Hoot