Skip to comments.Gas Station Chain Fined For Selling Gas Too Cheaply
Posted on 02/27/2006 11:34:30 AM PST by Abathar
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.
The Commerce Department says Midwest-owned stations in Anoka, Minn., Oakdale, Minn., and Albert Lea, Minn., sold gas below the minimum price on 293 days in 2005.
In previous cases, companies were fined anywhere from $500 to $70,000 for selling gas too cheaply.
Is this Scrappleface?
I believe if private industry did the same thing it would be called "collusion".
Ah, those crazy critics
How did that central planning thing work out for the Communists?
I can kind of understand the socialist mindset in trying to establish price ceilings, but what are they thinking in setting price floors???
|FINDING DEAL$ ON GA$OLINE:|
12 Month National Average for Regular Unleaded by AAA.com
Is this the U.S.???
I guess the idea is that it keeps the larger companies, which can absorb a loss in one location for a short time, from dropping prices below what the independents can charge, thus running them out of business. Once they're gone, the prices go up again.
My head is going to explode; please pass the duct tape.
I wonder if it also affects the taxation of gas formula.
If it falls too low then you end up paying more in taxes than gasoline.
And this is why I affectionately refer to my birth state as "The Great Socialist State of Minnesota."
Want to? Sounds like they have.
If I'm not mistaken, this protectionist law grew out of Wal-Marts and Sam's Clubs selling gasoline "below cost" (according to the old-guard competitors). Its purpose is to prevent the traditional gas stations from going broke.
Thankfully, it hasn't caught on around the nation.
Ding Ding Ding!!!
We have a winner!
Instead of just scrolling past them all, please take a moment to click the applicable state on the Topics screen when posting news of local interest.
This would explain why prices go up so quickly but take so long to come down.
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