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Gas Station Chain Fined For Selling Gas Too Cheaply
The Indy Channel ^
| February 27, 2006
| AP
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.
TOPICS: Miscellaneous; US: Minnesota
KEYWORDS: bigbrother; energy; gasoline; protectionism
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1
posted on
02/27/2006 11:34:32 AM PST
by
Abathar
To: Abathar
2
posted on
02/27/2006 11:35:36 AM PST
by
RexBeach
("There is no substitute for victory." -Douglas MacArthur)
To: Abathar
I believe if private industry did the same thing it would be called "collusion".
3
posted on
02/27/2006 11:36:00 AM PST
by
SlowBoat407
(The best stuff happens just before the thread snaps.)
To: Abathar
but some critics argue it fails to protect consumers. Ah, those crazy critics
4
posted on
02/27/2006 11:36:00 AM PST
by
soccer_maniac
(Do some good while browsing FR --> Join our Folding@Home Team# 36120: keyword: folding@home)
To: SlowBoat407
How did that central planning thing work out for the Communists?
5
posted on
02/27/2006 11:38:10 AM PST
by
dfwgator
To: Abathar
I can kind of understand the socialist mindset in trying to establish price ceilings, but what are they thinking in setting price floors???
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Comment #8 Removed by Moderator
To: Abathar
WTF???
Is this the U.S.???
9
posted on
02/27/2006 11:41:08 AM PST
by
Redbob
To: Always Right
but what are they thinking in setting price floors???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.
10
posted on
02/27/2006 11:41:47 AM PST
by
SlowBoat407
(The best stuff happens just before the thread snaps.)
To: Abathar; sure_fine
My head is going to explode; please pass the duct tape.
To: Abathar
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.
12
posted on
02/27/2006 11:43:32 AM PST
by
Horatio Gates
(Yea, though I live in the valley of DUmmies, they will fear me for FR is with me)
To: SlowBoat407
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.
To: Abathar
And this is why I affectionately refer to my birth state as "The Great Socialist State of Minnesota."
14
posted on
02/27/2006 11:45:00 AM PST
by
Kimmers
To: bobbdobbs
Socialists want to make all three illegal. Want to? Sounds like they have.
To: Abathar
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.
16
posted on
02/27/2006 11:46:18 AM PST
by
newgeezer
(Just my opinion, of course. Your mileage may vary.)
To: Horatio Gates
"The agency said it's fining Midwest Oil $140,000 for breaking a state formula based on ****** taxes to determine a daily floor for gas prices." Ding Ding Ding!!!
We have a winner!
17
posted on
02/27/2006 11:47:27 AM PST
by
Abathar
(Proudly catching hell for posting without reading since 2004)
To: Abathar
Added MN to the
TOPICS list for our FRiends who monitor Minnesota news in the sidebar.
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.
18
posted on
02/27/2006 11:48:22 AM PST
by
newgeezer
(Just my opinion, of course. Your mileage may vary.)
To: Redbob
WTF???
Is this the U.S.???
LOL!
The feds will use the Commerce Clause against the states over medical marijuana, but won't touch this tax gouging....
19
posted on
02/27/2006 11:54:09 AM PST
by
mugs99
(Don't take life too seriously, you won't get out alive.)
To: Abathar
This would explain why prices go up so quickly but take so long to come down.
20
posted on
02/27/2006 11:54:31 AM PST
by
kidd
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