Minn. Cracks Down on Underpriced Gasoline
Fri May 28, 5:59 PM ET Add Strange News - AP to My Yahoo!
By PATRICK HOWE, Associated Press Writer
ST. PAUL - Just in time for Memorial Day weekend, Minnesota's Commerce Department (news - web sites) is cracking down on service stations over the price of gasoline. The problem: Some stations aren't charging enough.
Under Gov. Jesse Ventura, the state adopted a law in 2001 that prohibits gas stations from selling gas without taking a minimum profit. These days, they must charge at least 8 cents per gallon, plus taxes, more than they paid for it.
On Friday, the Commerce Department announced a $70,000 fine against Arkansas-based Murphy Oil for breaking the law at its 10 stations in the state, based at Wal-Mart stores and elsewhere. They also fined Kwik Trip Inc. $5,000 for violations at one station in Apple Valley.
The two are the first fines levied under the law, which is similar to minimum-price laws in about a dozen states. Another two dozen have broader laws banning predatory pricing.
"The Legislature makes the law, and we enforce the law," said Carol Hockert, director of the department's weights and measures division.
It's her job to investigate alleged violations of the law, and there are plenty.
Hockert said she receives as many as 100 complaints a week, mostly from competitors convinced neighboring stations aren't charging enough.
In many cases they're wrong — the wholesale price changes day to day, and often one station might still be selling gas in its reserves that it bought at a cheaper price while its competitor only has newer, higher-priced gas to sell.
But stations turn over their supply fast, Hockert said, and if a station continually sells gasoline for less than what the department knows the wholesaler sold it for, she investigates.
"If $1.95 was legal yesterday, they get the benefit of the doubt," she said. "If $1.95 hasn't been a legal price for two weeks, then clearly it's a violation."
Complaints have risen right along with gas prices, she said.
According to AAA, gasoline is about 60 cents higher this Memorial Day weekend than last. The average price of gas in Minnesota is $2.02.
Fri May 28, 5:59 PM ET Add Strange News - AP to My Yahoo!
By PATRICK HOWE, Associated Press Writer
ST. PAUL - Just in time for Memorial Day weekend, Minnesota's Commerce Department (news - web sites) is cracking down on service stations over the price of gasoline. The problem: Some stations aren't charging enough.
Under Gov. Jesse Ventura, the state adopted a law in 2001 that prohibits gas stations from selling gas without taking a minimum profit. These days, they must charge at least 8 cents per gallon, plus taxes, more than they paid for it.
On Friday, the Commerce Department announced a $70,000 fine against Arkansas-based Murphy Oil for breaking the law at its 10 stations in the state, based at Wal-Mart stores and elsewhere. They also fined Kwik Trip Inc. $5,000 for violations at one station in Apple Valley.
The two are the first fines levied under the law, which is similar to minimum-price laws in about a dozen states. Another two dozen have broader laws banning predatory pricing.
"The Legislature makes the law, and we enforce the law," said Carol Hockert, director of the department's weights and measures division.
It's her job to investigate alleged violations of the law, and there are plenty.
Hockert said she receives as many as 100 complaints a week, mostly from competitors convinced neighboring stations aren't charging enough.
In many cases they're wrong — the wholesale price changes day to day, and often one station might still be selling gas in its reserves that it bought at a cheaper price while its competitor only has newer, higher-priced gas to sell.
But stations turn over their supply fast, Hockert said, and if a station continually sells gasoline for less than what the department knows the wholesaler sold it for, she investigates.
"If $1.95 was legal yesterday, they get the benefit of the doubt," she said. "If $1.95 hasn't been a legal price for two weeks, then clearly it's a violation."
Complaints have risen right along with gas prices, she said.
According to AAA, gasoline is about 60 cents higher this Memorial Day weekend than last. The average price of gas in Minnesota is $2.02.
