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.

[silentreignofheroes]

Is this the U.S.???

No,this is nothing but International Banking..They own the business,set the price and you had darn well better pay your debt on time..!

[Wally_Kalbacken]

Well, it wasn't pretty, let me tell you.

I was taking a course in Soviet Constitutional and Legal History while in law school during the fall of 1991. There was a reading period of about a week, just before exams began in mid Decmber of that year. Between the last lecture and the final exam - the subject matter of the course went poof!

During those last weeks of the CCCP - I recall one stunning factoid quoted in an article in the New York TImes. Their Moscow correspondent was noticing the absurd contrasts between the expanding and increasingly above ground "black market" and the items which were still priced according to the central planning experts.

The quote that will remain with me as long as I have accessible brain cells is this: "The price of 5 quarts of fresh milk, imported from Finland and available on the black market - is now equal to the price of a one way ticket on Aeroflot from Moscow to Vladivostok, 13 time zones away."

[MarxSux]

Not exactly. It's Minnesota.

[Just another Joe]

Is this Scrappleface?

Nope. This is Minnesota.

Minnesota tells the gas stations the minimum price they can charge for a gallon of gas.

[VRWCmember]

but some critics argue it fails to protect consumers.

How silly. It protects consumers from paying too little for gas. If they paid too little, they might get confused about what to do with the rest of their money.

[antiRepublicrat]

A law with the good intent of stopping monopolistic dumping now being used to hurt the consumer. Great.

[geezerwheezer]

I've got it all figured out....them folks at the state house up there in Minnesota done went and got their brains frozed and come up with this here hare-brained idear of charging a minimum price for the poor folks to buy their gasoline. I reckon that's 'cause the people wouldn't know how to properly spend their excess cash savings on food and stuff like that, so the state of Minnesota gonna' hep 'em spend their money. Dang, you folks up there sure is really smart to think of that idear all on your own!! Whut dumass idear you got fur next week?

[OnRightOnLeftCoast]

Uff da!

You couldn't have said it better.

Classic Catch-22!

[mad_as_he$$]

Another fine example of Government sticking it's nose in where it has no business.

[festus]

I wonder if it also affects the taxation...

Folks the man has the answers. This is the same for govt be it gas or tobacco. They want their money.

[bulldozer]

There is a reason Minnesota has the Loon as the state bird.