SlowlySinking
Master Chief Petty Officer
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- Oct 31, 2002
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Minn. Cracks Down on Underpriced Gasoline 
<br /><br />Posted on May 28 at 6:58 PM<br /><br />By PATRICK HOWE, Associated Press Writer <br /><br />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. <br /><br />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. <br /><br />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. <br /><br />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. <br /><br />"The Legislature makes the law, and we enforce the law," said Carol Hockert, director of the department's weights and measures division. <br /><br />It's her job to investigate alleged violations of the law, and there are plenty. <br /><br />Hockert said she receives as many as 100 complaints a week, mostly from competitors convinced neighboring stations aren't charging enough. <br /><br />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. <br /><br />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. <br /><br />"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." <br /><br />Complaints have risen right along with gas prices, she said. <br /><br />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.
<br /><br />Posted on May 28 at 6:58 PM<br /><br />By PATRICK HOWE, Associated Press Writer <br /><br />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. <br /><br />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. <br /><br />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. <br /><br />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. <br /><br />"The Legislature makes the law, and we enforce the law," said Carol Hockert, director of the department's weights and measures division. <br /><br />It's her job to investigate alleged violations of the law, and there are plenty. <br /><br />Hockert said she receives as many as 100 complaints a week, mostly from competitors convinced neighboring stations aren't charging enough. <br /><br />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. <br /><br />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. <br /><br />"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." <br /><br />Complaints have risen right along with gas prices, she said. <br /><br />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.
