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In Soviet Russia, Thrifty Prices Gouge You

Minn. Cracks Down on Underpriced Gasoline:

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.

Ahem, as·i·nine - adj:
1. Utterly stupid or silly: asinine behavior.
2. Of, relating to, or resembling an ass.

Whew, I'm so glad cheapskates like Murphy Oil are being fined and punished, after all, if other companies use this evil business strategy, prices of goods and services would decline en masse, saving individuals and families so much money that they would probably start funding terrorism just so they wouldn't feel guilty about having so much more wealth laying around.

I mean with friendly gubmint officials like Carol Hockert, who needs enemies like your local house burglar?

And what a bunch of whiney brats, tattle tailing on Joe Schmoe down the street for selling his gasoline at a price he wants and one that customers are willing to buy at. It would be like Michael Dell getting the FTC to tell Gateway to charge more for their computers, or else.

From now on I will demand that the seller of goods and services charge me more and give me less -- otherwise it's just down right un-American.

Via Chris Dominguez. Extra thanks to Yakov Smirnoff.

Just Say No Posted by Tim at May 28, 2004 06:53 PM | TrackBack