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Midwest Oil fined for selling gas too cheaply
Star Tribune ^
| February 24, 2006
| Tom Ford,
Posted on 02/24/2006 9:23:20 AM PST by george76
The state imposed a $140,000 penalty for what it called "willful, continuing, and egregious" violations of the price law...
The Minnesota Commerce Department on Thursday announced plans to fine a gas station chain $140,000 for repeatedly selling gas below the state's legal minimum price.
The fine against Midwest Oil of Minnesota is twice as large as any imposed on a company since 2001, when the state established a formula based on wholesale prices, fees and taxes to determine a daily floor for gas prices.
Kevin Murphy, deputy commissioner of the department, called the violations "willful, continuing, and egregious and warrant a substantial penalty."
The company has 30 days to contest the fine by requesting a hearing.
In previous cases, companies were fined anywhere from $500 to $70,000 for selling gas too cheaply.
Gov. Tim Pawlenty and several Minnesota legislators have urged a repeal of the state's minimum price rules.
Critics have argued that it ends up costing most customers an extra dollar or more to fill up, without adding to tax revenues.
(Excerpt) Read more at startribune.com ...
TOPICS: Business/Economy; Front Page News; Government; News/Current Events; Politics/Elections; US: Hawaii; US: Maryland; US: Minnesota
KEYWORDS: beer; bilkem; cheathem; continuing; dewey; egregious; electricity; energy; gas; govpawlenty; howe; jesseventura; kevinmurphy; labor; laborunions; lawfirm; medicalcare; milk; murphy; oil; oranges; pawlentyoil; pricelaw; robem; socialism; stateofminn; sugar; tax; taxes; taxesrus; thelandofmilkem; tomatoes; union; unions; ventura; violations; willful
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To: KarlInOhio
If you sell for too high of price you're gouging, if you sell for too low of price you're unfairly competing, and if you sell for the same price as your competitors you're colluding. That's about it. I don't know about your area but down here in the Carolinas, Coke and Pepsi have solved that problem. They take turns having sales, one week it's Pepsi, the next it's Coke. Each week one bribes the grocery store chain for product placement and has a sale. Next week, the other does it. If you can drink either one or neither, you're fine.
Since the situation changes every week and at no time is one priced the same as the other, problem solved.
To: Publius6961
As a side issue, what possible rationalization can there be for a state government setting the minimum price for anything?Like labor?
42
posted on
02/24/2006 10:47:37 AM PST
by
Onelifetogive
(* Sarcasm tag ALWAYS required. For some FReepers, sarcasm can NEVER be obvious enough.)
To: DeFault User
I can buy Coke or Pepsi cheaper when they have their sales at Walmarts , than I can buy it directly off the truck. I was told by the driver that they buy theirs at Walmart or wherever the sale is because its cheaper than the employee price. ./
To: DonaldC
"The purpose is probably to keep someone from just dumping on the market below costs just to take out competition."
... despite the fact that such a pricing strategy can never be profitable for the "dumping" firm!
Comment #45 Removed by Moderator
To: george76
Maryland has a law like that, too. A great bonus for rent-seekers.
46
posted on
02/24/2006 12:50:50 PM PST
by
Tolerance Sucks Rocks
(Now is the time for all good customes agents in Tiajunna to come to the aid of their stuned beebers!)
To: DeFault User
Imagine what they would get for punishment if they had given it away. Probably execution.
47
posted on
02/24/2006 1:02:31 PM PST
by
Past Your Eyes
(You knew the job was dangerous when you took it.)
To: george76
48
posted on
02/24/2006 1:29:47 PM PST
by
traviskicks
(http://www.neoperspectives.com/israel_palestine_conflict.htm)
To: traviskicks
49
posted on
02/24/2006 2:24:13 PM PST
by
george76
(Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
To: KarlInOhio
Gubmint Goldilocks price: it's "juuuuust right"
50
posted on
02/24/2006 3:07:03 PM PST
by
Rakkasan1
(Muslims pray to Allah, Allah prays to Chuck Norris.)
To: tfecw
...so the state can get more bang for it's 2% gas tax? Or is it part of some anti-competition thingy? Probably both.
51
posted on
02/24/2006 3:09:22 PM PST
by
PsyOp
(The commonwealth is theirs who hold the arms.... - Aristotle.)
To: tfecw
It's anti-competition -- the state collects by the gallon.
To: Mikey_1962
To: george76
54
posted on
02/24/2006 4:49:17 PM PST
by
lowbridge
(I want to die peacefully in my sleep like my grandfather. Not screaming, like his passengers.)
To: lowbridge
Those laws are everywhere.... Its socialism at its worst...
55
posted on
02/24/2006 5:57:13 PM PST
by
lgjhn
To: KarlInOhio
If you sell for too high of price you're gouging, if you sell for too low of price you're unfairly competing, and if you sell for the same price as your competitors you're colluding. Can I use that phrase for a Conservative T-shirt? (It won't fit on a bumper sticker!)
56
posted on
02/24/2006 6:24:11 PM PST
by
grey_whiskers
(The opinions are solely those of the author and are subject to change without notice.)
To: Eastbound
-- (Taxes 'R Us ... State of Minn, the Land of Milk'em, Bilk'em and Rob) Used to live in Minnesota. Is Roger Moe still in the State Senate?
Full Disclosure: It was a real shame Rudy Boschwitz lost to the now-deceased Wellstone. I liked the free-refill tank truck of milk at the State Fair to eat with the cookies.
Second Disclosure: The Land of Milk'em, Bilk-em and Rob is doubtless represented by the Law Firm of Dewey, Cheathem, and Howe!
Cheers!
57
posted on
02/24/2006 6:26:55 PM PST
by
grey_whiskers
(The opinions are solely those of the author and are subject to change without notice.)
To: DonaldC
Correct. Some of the ...ahem.... big box supercenters have gotten into similar trouble for selling gas under the going rate to draw customers to stores.
To: george76
Gov. Tim Pawlenty and several Minnesota legislators have urged a repeal of the state's minimum price rules. Time to quit urgin' and start legislatin'.
59
posted on
02/24/2006 6:40:44 PM PST
by
GretchenM
(What does it profit a man to gain the whole world and lose his soul? Please meet my friend, Jesus.)
To: grey_whiskers
Can I use that phrase for a Conservative T-shirt? (It won't fit on a bumper sticker!) Use it if you want to. I paraphrased it from Ayn Rand, so you might want to look for the original. Sorry, I don't know which book it was from.
60
posted on
02/24/2006 6:43:49 PM PST
by
KarlInOhio
(Next Olympics I want wide track bobsledding. Four sleds on the track at once - like Ben Hur on ice.)
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