| May 8, 2007 @ 11:46 PM |
Competition and Free Enterprise- Gov't Says No
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raykl
Posts: 566
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Gas Station Owner Told to Raise Prices 
MERRILL, Wis. (AP) -- A service station that offered discounted gas to senior citizens and people supporting youth sports has been ordered by the state to raise its prices. Center City BP owner Raj Bhandari has been offering senior citizens a 2 cent per gallon price break and discount cards that let sports boosters pay 3 cents less per gallon.
But the state Department of Agriculture, Trade and Consumer Protection says those deals are too good: They violate Wisconsin's Unfair Sales Act, which requires stations to sell gas for about 9.2 percent more than the wholesale price.
Bhandari said he received a letter from the state auditor in late April saying the state would sue him if he did not raise his prices. The state could penalize him for each discounted gallon he sold, with the fine determined by a judge.
Bhandari, who bought the station in May 2006, said he worries customers will think he stopped the discounts because he wants to make more money. About 10 percent of his customers had used the discount cards.
Dale Van Camp of Merrill said he bought a $50 card to support the local youth hockey program. It would have saved him about $100 per year on gas, he said.
Information from: Wausau Daily Herald
http://www.wausaudailyherald.com
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| May 9, 2007 @ 12:36 AM |
Competition and Free Enterprise- Gov't Says No |
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stormbay
Posts: 695
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Seems things are not much different in your country to Aus. We have the similar problems, but the opposite. Our fuel companies make deals with the food duopoly in this country, selling fuel to them cheaply, so they can undercut independent retailers.
We have no laws preventing price racketeering, so its open slather until they wipe out the competition and then up goes all the prices. Sounds like which ever country your living in, we are being heavily screwed.
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| May 9, 2007 @ 7:05 AM |
Competition and Free Enterprise- Gov't Says No
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FeliciVagano
Posts: 2,152
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just noting here....this is a state government problem ..politics on a local level are not as hard to change..(as on a federal level)
.. for what ever reason ..Wisconsin hates competition and free enterprise
I sometimes wonder why, at times. Wisconsin cheese is cheaper than California cheese..(here in California ). a case of cheese dumping  
after all everyone knows that "the happiest cows live in California...." 
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| May 9, 2007 @ 10:10 AM |
Competition and Free Enterprise- Gov't Says No |
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MusicMonster
Posts: 2,954
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That's a real jaw-dropper to me!!  <=jaw dropping.
I can't even imagine it working that way. The profit margin is supposed to be set by the business selling the gas, and just about every station charges something slightly different.
I have never heard of a conspiracy (state controlled or otherwise) where a business owner is required to charge a specific price. Usually it's competitive and all about what the market will bear. People shop around for the best prices they can get.
-MM
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| May 9, 2007 @ 10:44 AM |
Competition and Free Enterprise- Gov't Says No
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steveemac
Posts: 2,336
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.. for what ever reason ..Wisconsin hates competition and free enterprise
This is an oversimplification of the issue, I'm afraid...Wisconsin treats gasoline differently than any other product; this is not an across-the-board policy...I don't know all the rules that apply here, and I'm not sure I want to; but this situation wouldn't occur with anything like milk, bread, clothes, etc.
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| May 9, 2007 @ 9:55 PM |
Competition and Free Enterprise- Gov't Says No |
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DawolfLover
Posts: 568
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Sadly I found out that my state has a similar law. Last summer I found out that my state has a "minimum markup" law for gas stations. Once they've met the minimum markup they're free to charge more if they wish, this is their consideration for competition.
I'm guessing that most states have similar laws and we just haven't heard about them. Welcome to the US of Oil.
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| May 9, 2007 @ 9:58 PM |
Competition and Free Enterprise- Gov't Says No
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BandTMom
Posts: 28,232
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I heard this explained on the radio this morning. Seems these laws are in effect to protect the "little guy". Large companies can afford lower prices at at larger volume that small businesses.
Still sucks.
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