Gas Station Owner Told to Raise Prices

**BEB** · 05-09-07, 04:47 AM

http://www.newsday.com/news/nationwo...orld-headlines

Gas Station Owner Told to Raise Prices

MERRILL, Wis. -- 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.

**countybear** · 05-09-07, 07:57 AM

Hmm... who do you turn to when the State is the one guilty of price fixing?

**BEB** · 05-09-07, 08:08 AM

Richard Nixon? Jimmy Carter? Hugo Chavez?

But I repeat myself.

Sadly, I don't think the public has figured out price fixing doesn't work. In this bright red state I live in I'm hearing calls for nationalizing the oil companies over this little price bump. It's terrifying, really, what the sheeple will advocate for their own misery.

I hope gas hits $4 a gallon this summer. That psychological mark should be sufficient to get innovation rolling. In the short run - harsh. In the long run - great. In the mid run - we'll see. That's the market.

**conalabu** · 05-09-07, 09:06 AM

Originally Posted by BEB

Richard Nixon? Jimmy Carter? Hugo Chavez?

But I repeat myself.

Sadly, I don't think the public has figured out price fixing doesn't work. In this bright red state I live in I'm hearing calls for nationalizing the oil companies over this little price bump. It's terrifying, really, what the sheeple will advocate for their own misery.

I hope gas hits $4 a gallon this summer. That psychological mark should be sufficient to get innovation rolling. In the short run - harsh. In the long run - great. In the mid run - we'll see. That's the market.

Initially, your lasiez faire attitiude kind of pissed me off. After taking a moment to think though, you may be right. I don't agree that this is a "little price bump", but everything else is pretty much right on.

**rob84** · 05-09-07, 09:22 AM

Thats fucked up.

**Crimebytes2** · 05-09-07, 10:00 AM

That's just not right!

**phantasm** · 05-09-07, 10:19 AM

Originally Posted by countybear

Hmm... who do you turn to when the State is the one guilty of price fixing?

The feds?

If someone wants to make 8% profit (or whatever) on his product, he should be allowed to do so, or 5% or 15%, or whatever he wants to charge. Its his business.

**Ducky** · 05-09-07, 10:21 AM

The companies don't want anything cutting into their "record profits" and neither does the state. Great. The overall message is "screw the consumer at all costs."

**blackcamaro8895** · 05-09-07, 10:29 AM

Wow. Here in Nelsonville last week, it was up to $3.19. Berlin it was $3.25. My brother who is in the AF in Fairfield, California, said it was $4.00. What a wonderful world. Especially since i eat less now so i can afford gas. Ive lost five pounds in the last couple weeks.

**213th** · 05-09-07, 10:34 AM

Originally Posted by BEB

\

I hope gas hits $4 a gallon this summer. That psychological mark should be sufficient to get innovation rolling. In the short run - harsh. In the long run - great. In the mid run - we'll see. That's the market.

Isn't that what they said about the 3/gal mark though?

**Rhino** · 05-09-07, 03:26 PM

Originally Posted by phantasm

The feds?

If someone wants to make 8% profit (or whatever) on his product, he should be allowed to do so, or 5% or 15%, or whatever he wants to charge. Its his business.

Yeah, George W. Bush is a renowned enemy of the oil business. I'm sure he'd put them in his place.

**countybear** · 05-09-07, 04:00 PM

Originally Posted by Rhino

Yeah, George W. Bush is a renowned enemy of the oil business. I'm sure he'd put them in his place.

What do you think old G.W. should do about the situation, Rhino?

**blackcamaro8895** · 05-09-07, 07:46 PM

Im gonna dump some Jack Daniels in my gas tank and see what happens.

**conalabu** · 05-09-07, 07:53 PM

Originally Posted by blackcamaro8895

Im gonna dump some Jack Daniels in my gas tank and see what happens.

That is a waste. That car needs moonshine. White lightning.

**BEB** · 05-09-07, 08:00 PM

Originally Posted by 213th

Isn't that what they said about the 3/gal mark though?

SUV sales tanked after the first $3 gas.

http://www.washingtonpost.com/wp-dyn...100301657.html
Sales of Detroit trucks stalled in September as spiking gas prices sped up a consumer shift toward more fuel-efficient vehicles.

In the first look at sales since Hurricane Katrina drove gasoline pump prices to $3 a gallon and beyond, sales of passenger cars grew last month while large, fuel-thirsty sport-utility vehicles languished. Overall, industry sales in September slid 7.6 percent from a year ago.

But people still like SUVs even if they can't afford to feed them. Solution? Sell SUVs people can afford to feed.

http://www.forbes.com/2007/03/09/suv...l_0312suv.html
The arrival of such new, car-like "crossover" SUVs as Ford's Edge, Lincoln's MKX, GMC's Acadia and Saturn's Outlook are helping even the scales a bit — even perhaps tipping them back toward good news for SUV manufacturers.

GM reported in a recent statement that the Acadia and Outlook "drove a 97% retail increase in the mid-crossover segment" for the company in February, compared with that time the year before. Such other new SUVs as Jeep's redesigned Wrangler have also been well received.

And while the Prius is far from my favorite car in factory form, hybrid SUVs are still practical and becoming increasingly available. I see six listed here, all of which are pushing 30mpg. http://www.fueleconomy.gov/feg/hybrid_sbs_SUVs.shtml

I would say the market is still reacting to $3 gas from 2005. Though at times its frustratingly slow.

**blackcamaro8895** · 05-09-07, 08:05 PM

Originally Posted by conalabu

That is a waste. That car needs moonshine. White lightning.

Woo hoo!!!! Thanks for the advice!!!!

**Rhino** · 05-09-07, 09:16 PM

Originally Posted by countybear

What do you think old G.W. should do about the situation, Rhino?

Well, the federal government should tell the state government that the station owner, as a free citizen of this country, should have the right to charge whatever he wants to charge for gas. If he takes a loss after paying overhead, so be it. It's called building a customer base.

Fat chance of that happening, though.

For those who think I'm sounding hypocritical being a Libertarian and all, I believe the state is impeding on that man's right to partake in a free market economy- and on issues like that, then I'm all for the federal government stepping in.

**countybear** · 05-09-07, 09:35 PM

Originally Posted by Rhino

Well, the federal government should tell the state government that the station owner, as a free citizen of this country, should have the right to charge whatever he wants to charge for gas. If he takes a loss after paying overhead, so be it. It's called building a customer base.

Fat chance of that happening, though.

For those who think I'm sounding hypocritical being a Libertarian and all, I believe the state is impeding on that man's right to partake in a free market economy- and on issues like that, then I'm all for the federal government stepping in.

As much as I agree with you on this issue, (see my earlier post), the Fed stepping in on a State's regulation of pricing might be opening a can of worms.

As much as the business owner has the right to participate in a free market economy, he also has the right to relocate his business to a State that doesn't participate in pricing regulation. Thoughts?

**BEB** · 05-09-07, 09:52 PM

The FTC has a nice letter from 2003 on their website saying how bad the act is...
http://www.ftc.gov/be/v030015.shtm

Seems this act is a depression era holdover like others still in effect in a number of states. BTW, 6% for our Louisiana friends, though it seems to be going unenforced. http://findarticles.com/p/articles/m...8/ai_n13618486

I found a few articles from the same time frame which advocated repealing it then. Perhaps this case will cause enough of an stir to finally get it repealed.

**Rhino** · 05-10-07, 03:04 PM

Originally Posted by countybear

As much as the business owner has the right to participate in a free market economy, he also has the right to relocate his business to a State that doesn't participate in pricing regulation. Thoughts?

The only way I'll agree to that statement, is if the state collectively wants such a ridiculous law on the books. I seriously doubt it, though. It's clearly a law designed to make the politicians fatter.