Gas Station Chain Fined For Selling Gas Too Cheaply

The Indy Channel ^ | February 27, 2006 | AP

[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.

[RexBeach]

Is this Scrappleface?

[SlowBoat407]

I believe if private industry did the same thing it would be called "collusion".

[soccer_maniac]

but some critics argue it fails to protect consumers.

Ah, those crazy critics

[dfwgator]

How did that central planning thing work out for the Communists?

[Always Right]

I can kind of understand the socialist mindset in trying to establish price ceilings, but what are they thinking in setting price floors???

[martin_fierro]

FINDING DEAL$ ON GA$OLINE:

(A work in progress. Please FReepmail other suggestions)

12 Month National Average for Regular Unleaded by AAA.com

Gas prices could fall with a TAX CUT, too!

• Nationwide:
  • fuelmeup.com (seems to work well with web-enabled cellphones)
  • gas123.com
  • gasbuddy.com (See also individual state listings below)
  • gasprice.com (amateur-looking)
  • gaspricewatch.com
  • Gas prices with Google Map Overlay
• Local:

  AAA Daily Fuel Gauge Report (local average prices) AL: www.alabamagasprices.com AK: www.alaskagasprices.com AZ: www.arizonagasprices.com AR: www.arkansasgasprices.com CA: www.californiagasprices.com San Diego, CA area: UCAN Fueltracker.com CO: www.coloradogasprices.com CT: www.connecticutgasprices.com DE: www.delawaregasprices.com DC: www.washingtondcgasprices.com FL: www.floridagasprices.com GA: www.georgiagasprices.com HI: www.hawaiigasprices.com ID: www.idahogasprices.com IL: www.illinoisgasprices.com IN and elsewhere (Speedway): www.speedway.com IN: www.indianagasprices.com IA: www.iowastategasprices.com KS: www.kansasgasprices.com KY: www.kentuckygasprices.com LA: www.louisianagasprices.com ME: www.mainegasprices.com MD: www.marylandgasprices.com MA: www.massachusettsgasprices.com MI: www.michigangasprices.com MN: www.minnesotagasprices.com

  MS: www.mississippigasprices.com MO: www.missourigasprices.com MT: www.montanagasprices.com NE: www.nebraskagasprices.com NV: www.nevadagasprices.com NH: www.newhampshiregasprices.com NJ: www.newjerseygasprices.com NM: www.newmexicogasprices.com NY: www.newyorkgasprices.com NC: www.northcarolinagasprices.com ND: www.northdakotagasprices.com OH: www.ohiogasprices.com OK: www.oklahomagasprices.com OR: www.oregongasprices.com PA: www.pennsylvaniagasprices.com RI: www.rhodeislandgasprices.com SC: www.southcarolinagasprices.com SD: www.southdakotagasprices.com TN: www.tennesseegasprices.com TX: www.texasgasprices.com UT: www.utahgasprices.com VT: www.vermontgasprices.com VA: www.virginiagasprices.com WA: www.washingtongasprices.com WV: www.westvirginiagasprices.com WI: www.wisconsingasprices.com WY: www.wyominggasprices.com

• Worldwide:
  • Canada: www.gastips.com
  • www.gaswars.com (very incomplete data)
• In-depth Research & Analysis:
  • Energy Information Administration (DOE)
  • energyeconomist.com
  • fueleconomy.gov
  • WTRG Economics: Analysis, planning, forecast and data services for energy producers and consumers

[Redbob]

WTF???

Is this the U.S.???

[SlowBoat407]

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.

[butternut_squash_bisque]

My head is going to explode; please pass the duct tape.

[Horatio Gates]

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.

[longtermmemmory]

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.

[Kimmers]

And this is why I affectionately refer to my birth state as "The Great Socialist State of Minnesota."

[Always Right]

Socialists want to make all three illegal.

Want to? Sounds like they have.

[newgeezer]

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.

[Abathar]

"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!

[newgeezer]

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.

[mugs99]

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....

[kidd]

This would explain why prices go up so quickly but take so long to come down.