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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

click here to read article


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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.)
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To: tfecw

It's anti-competition -- the state collects by the gallon.


52 posted on 02/24/2006 3:13:38 PM PST by The Old Hoosier (Right makes might.)
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To: Mikey_1962

Me too.


53 posted on 02/24/2006 4:09:37 PM PST by conservative blonde (Conservative Blonde)
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To: george76

bump


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.)
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To: lowbridge

Those laws are everywhere.... Its socialism at its worst...


55 posted on 02/24/2006 5:57:13 PM PST by lgjhn
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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.

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.)
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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.)
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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.


58 posted on 02/24/2006 6:29:17 PM PST by moehoward
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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.)
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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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To: george76

Liberals!.. (Eddie Murphy laugh)...


61 posted on 02/24/2006 6:48:52 PM PST by hosepipe (CAUTION: This propaganda is laced with hyperbole..)
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To: moehoward; DonaldC; Past Your Eyes
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.

As the article says:

Defenders of the law say it's critical to protect small and medium-sized stations.

They note that unlike large chains, those stations often can't cushion below-cost gasoline with sales of other merchandise.
In other words, it's designed to be a pro-competition move in an odd sort of way.
62 posted on 02/24/2006 8:36:19 PM PST by Gondring (I'll give up my right to die when hell freezes over my dead body!)
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To: Gondring

Still another way to put it is pro-Mom & Pop.


63 posted on 02/24/2006 8:49:28 PM PST by moehoward
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To: george76

Oh!...I get...Fees and TAXES determine the price of gas...not the "FREE MARKET"....


64 posted on 02/25/2006 2:00:11 AM PST by AngelesCrestHighway
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To: george76

The great state of Minnestupid. Hope they post the border of this state well and the surrounding states make sure the the Minnestupidians go home before sundown.


65 posted on 02/25/2006 2:05:36 AM PST by Modok
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To: george76

[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.]

Communism at work for you.


66 posted on 02/25/2006 6:19:06 AM PST by ohhhh ( I pray the public school system collapses for the good of the children.)
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To: Gondring

[They note that unlike large chains, those stations often can't cushion below-cost gasoline with sales of other merchandise.]
(In other words, it's designed to be a pro-competition move in an odd sort of way.)

It's the way that politicians undermine a free economy by making state control buisness laws that never work and will eventually destroy America's properity. Communism is what it is and athiest materialism always leads to poverty near as I can tell.


67 posted on 02/25/2006 6:30:51 AM PST by ohhhh ( I pray the public school system collapses for the good of the children.)
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To: Squawk 8888
"Here in Ontario it's worse- there's a law regulating the minimum price of beer :-(("

Gee Squawk 8888, we had a little dust up here in the USA regarding tax on Tea and you are sitting around while they keep the price of beer high! Sounds like a revolution in the making!

68 posted on 02/25/2006 6:44:02 AM PST by Wurlitzer (The difference between democrats and terrorists is the terrorists don't claim to support the troops)
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To: george76
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.

Let's send these "legal minimum price" people back to the Soviet Union of the 1950s.
69 posted on 02/25/2006 6:46:11 AM PST by aruanan
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To: KarlInOhio

Welcome to the "Free Market".


70 posted on 02/25/2006 7:09:59 AM PST by satchmodog9 (Most people stand on the tracks and never even hear the train coming)
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To: riverdawg

It might be profitable if the gas is a loss leader and most sales are on other items.


71 posted on 06/28/2007 9:42:24 PM PDT by HiTech RedNeck
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To: HiTech RedNeck
“It might be profitable if gas is a loss leader ...”

Well, this thread is four months old, but I’m glad there is still interest in the topic. The “loss leader” argument was used for years to justify minimum-price laws pertaining to milk sales at convenience stores. I agree that the “loss leader” strategy can be profitable in the short run for a single firm as a means of attracting customers into the store who would otherwise shop elsewhere. However, it’s hard for me to see how this could be a profit-maximizing strategy in the long-run once competing firms react by meeting the lower price to entice their lost customers back into their stores. Since gas prices are required to be posted in almost every state, it’s easy for competitors to observe what prices other stations are charging and to react accordingly.

I’m old enough to remember the gas-price “wars” of the 1950’s in which gasoline retailers engaged in ultimately self-destructive rounds of price reductions in an unsuccessful (in the long run) attempt to gain market share and sell related products and services, like oil changes, tires, and batteries.

72 posted on 06/29/2007 8:00:38 AM PDT by riverdawg
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To: riverdawg

Whether or not there SHOULD be price floors is another matter for debate, but it would be easy to see how gas stations with little or no side sales would want them. They would be snuffed out by the big groceries and sundry retailers using gas as a loss leader. Lower their prices to match? Sure, till they run out of money.


73 posted on 06/29/2007 2:59:37 PM PDT by HiTech RedNeck
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