Gas Station owner told to raise gas prices

[mistanice]

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.

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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 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 last month 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 a year ago, 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 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.

[BTEXDAD]

Originally posted by mistanice
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.

Is that law just in Wisconsin? I had no idea states could mandate prices.

[wedo]

Originally posted by mistanice
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.

ADVERTISEMENT

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 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 last month 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 a year ago, 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 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.

Whats the difference between this gas station and the ones at Wal-Mart? I know if you use as Wal Mart gift card your gas is three cents less!

[Adidas410s]

Originally posted by wedo
Whats the difference between this gas station and the ones at Wal-Mart? I know if you use as Wal Mart gift card your gas is three cents less!

That may or may not be true at the Wal-Mart's in Wisconsin. Also, Wal-Mart could be paying the $.03/gallon difference to state and writing it off as "goodwill" on thier part. There may not be a similar law in Texas as well. There are a lot of workarounds that would allow WM to do that.

[Adidas410s]

Originally posted by BTEXDAD
Is that law just in Wisconsin? I had no idea states could mandate prices.

I don't think the states are mandating prices. Without having read the law, it sounds as if they are trying to protect small business by not allowing others to alter their prices in a way that is detrimental to the makeup of that particular market. Now as to whether or not this is bad or not...that's not for us to decide as we have very limited information about this situation.

[BTEXDAD]

Originally posted by Adidas410s
I don't think the states are mandating prices. Without having read the law, it sounds as if they are trying to protect small business by not allowing others to alter their prices in a way that is detrimental to the makeup of that particular market. Now as to whether or not this is bad or not...that's not for us to decide as we have very limited information about this situation.

Okay, I follow you. There's probably a lot more to it than the state of Wisconsin just telling them how much profit they HAVE to make.

[wedo]

That may or may not be true at the Wal-Mart's in Wisconsin. Also, Wal-Mart could be paying the $.03/gallon difference to state and writing it off as "goodwill" on thier part. There may not be a similar law in Texas as well. There are a lot of workarounds that would allow WM to do that.

yeah i didn't think about that

[SintonFan_inAustin]

$2.72 is lowest i seen today and have seen some as high as $2.83 unleaded. Why is there such a big difference in price within a 80 mile radius?

[LH Panther Mom]

Oh, give me a break!!!!! I can "understand" the law, but how silly is this. Does Wisconsin not have more important items to address?

[RMAC]

Originally posted by SintonFan_inAustin
$2.72 is lowest i seen today and have seen some as high as $2.83 unleaded. Why is there such a big difference in price within a 80 mile radius?

Shoot, I paid $2.95 yesterday at United and it was like $3.07 down the road at Shell.

[Adidas410s]

Originally posted by RMAC
Shoot, I paid $2.95 yesterday at United and it was like $3.07 down the road at Shell.

The Flying J LBK is $2.85