Gas too cheap?

[Stormwalker]

http://www.twincities.com/mld/twincities/12000190.htm

Think that they should be punished? Just to be sure, was everyone aware that there is a state minimum price on gasoline? Should we regulate the price of gasoline, or take the free market approach and let it be? I smell some political discourse coming, but this topic does affect something near and dear to a bunch of car enthusiasts, the price we pay for using our toys.

[Emart]

no i wont sign up.

[KrisR]

no i wont sign up.

Me either...copy/paste the article? Is this a gas station in Oakdale, off Highway 5 and Hadley? They have gas 20 cents cheaper than everybody else. Big long lines there every day.

[Stormwalker]

Sorry about that, forgot they had registration now.

Pump bargains called illegal

Gas station chain undercut rivals by setting prices too low, agency alleges

Pioneer Press

A little chain of gas stations could be in big trouble with the state of Minnesota for allegedly undercutting competitors illegally.

Midwest Oil of Minnesota was accused Monday of more than 160 violations of a state law that requires stations to charge at least 8 cents more per gallon than they pay for gasoline, the Commerce Department said. Conceivably, Midwest Oil could be fined more than $1.6 million.

Commerce has ordered the company to stop breaking the minimum price law and to appear at an administrative hearing into the alleged violations. That's a first for the department, which has only enforced the law a handful of times since it was enacted in 2001. In each of those instances, the owners settled and paid fines ranging from $500 to $70,000.

A call to Midwest Oil was not returned. The company, which is based in Shawano, Wis., owns three gas stations in Minnesota: Oakdale Exxon, Anoka Exxon and Budget-Mart Mobil in Albert Lea. The company has received media attention for its low gasoline prices.

Commerce Department spokesman Bruce Gordon said the agency is investigating 10 similar cases around the state. "Any time prices increase there's more sensitivity to what people are charging at the pump. Competitors are also very sensitive because margins are very thin. Our complaints come from competitors, not consumers."

A gallon of regular unleaded gas cost an average of $2.13 in Minnesota on Monday, compared with $1.97 a month ago and $1.80 a year ago, according to AAA. The site twincitiesgasprices.com noted several stations selling regular unleaded for $2.25 a gallon on Monday.

The allegations leveled against Midwest Oil came about after a lengthy investigation, according to Commerce.

The department alleges that its investigators repeatedly bought gasoline below minimum prices at all three stations and that Midwest Oil failed to fully comply with subpoenas requesting documents.

Minnesota law bars retailers from selling gasoline below cost. In essence, that's at least 8 cents above the total of wholesale prices, plus taxes and fees. For instance, the minimum price on March 25 was $2.05 per gallon, but Commerce said it paid $1.96 at Midwest Oil's Anoka station. Two days later, Commerce said it paid $1.98 a gallon, when the minimum should have been $2.05. Commerce also alleged that Midwest Oil charged less at the pump than the prices posted on signs at its stations and that the company offered illegal discounts if customers paid inside rather than at the pump.

Tim Huber can be reached at thuber@pioneerpress.com or 651-228-5580.

[SmithEvo]

in before the ban. political thread's suck!

[Grifter]

funny how gas goes up today, when crude oil prices dropped.. huh..
i think the whole "minimum price" theory is BS, but at the same time has merit in its theory...

If you noticed, Walmart now sells gas at some stores.. if the minimum price was dropped, Walmart being the big super retail power it is, would sell it for uber cheap, say $1, and take the loss on it all and hope that people go in the store and buy a $7 5 gallon tub of ketchup that they undercut Heinz for to make a bunch of profit on.. they would run the local stores right out of business, the ones that cant afford to sell it at a loss. this might be a decent thing in the short run, while a few stores hang on, but as soon as the competition is gone, then Walmart takes its big retail ability to jack the crap out of the price and screw everyone.. $10 a gallon or something retarded like that..

now, make it a compromise.. drop the minimum price thing to say $.75 lower than the wholsale cost, and let the stores fight it out..

[fuzzy moonunit]

funny how gas goes up today, when crude oil prices dropped.. huh..

and if you knew how it worked you would realize a dip in price per barrel will be felt at the pumps 2-6 months later...

remember a few months ago when the news was spouting off about crude price per barrel being pleasantly low? we're on our way back up from that brief price dip. buy a TDI

[Nifty]

Buy a TDI? Have you seen Diesel prices? Im all for price wars...come on damn it.

[fuzzy moonunit]

Buy a TDI? Have you seen Diesel prices?

just saw it today when i filled up. 5cents higher than regular unleaded. i get 40-45mpg with a 4 door automatic making 180ft/lbs of torque

[Nifty]

Before they raised it last week or so though it was 2.25 while 87 octane was 1.96....I'll give you the gas mileage though.

[Grifter]

and if you knew how it worked you would realize a dip in price per barrel will be felt at the pumps 2-6 months later...

remember a few months ago when the news was spouting off about crude price per barrel being pleasantly low? we're on our way back up from that brief price dip. buy a TDI

But you must not know how it works when the crude price goes UP..
watch, if the barrel price goes up, so does gas.. simple as that..
it only works in 1 direction..

[Nifty]

But you must not know how it works when the crude price goes UP..
watch, if the barrel price goes up, so does gas.. simple as that..
it only works in 1 direction..

That direction is generally in the direction of our asses...

[Obscene1]

stormwalker how old are you?

[Matt87GTA]

I agree that something needs to be done. Between the taxes and this stupid minimum price BS we are getting F'd in the A. I agree that we need to keep some of the larger wholesalers in check or they will be able to wipe out the competition and have a monopoly with the potential ability to price gouge.... But lets not assume it has happened before it has and set policy accordingly. I agree that there should be a limit on the discount but it is out of control right now. It should just be there to avoid the $1 gas that will put all of the smaller stations out of business, not prop up stations that are not economically viable in the first place.

How many people really shop for gas every single time they fill up anyways? If the station that is right on your way to work and sells quality gas is $.08 or $.10 more expensive than some other station, it wouldn't even make sense to drive out of your way to get the gas at the cheaper place anyways - you'd burn that much up just driving to that other station. As long as they prevent a massively discounted price from a wholesaler like Walmart the competition will keep pricing in check.

We, the customers, should not be forced to subsidize gas stations by government price fixing.

[Stormwalker]

stormwalker how old are you?

I have no idea what relevance this has, but I am 25.