Gas station owner forced to raise prices


Free market struggles in Wisconsin

Government control rears it's ugly head. Read it and weep.

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 violate Wisconsin's Unfair Sales Act, which requires stations to sell gas for about 9.2 percent more than the wholesale price.

In all fairness, it is not just Wisconsin. For example, Arizona has a law barring station owners from selling gas for more than a few cents less than their competition.

But the point I really want to make is that this doesn't pass the toothpaste test.

What is the toothpaste test you ask?

Can you imagine the government setting the minimum discount that a merchandiser could sell toothpaste at? Could you imagine the government setting the maximum price for toothpaste? Could you imagine the government mandating the formula for toothpaste based on the time of year?

That's the toothpaste test.

— NeoWayland

Posted: Thu - May 10, 2007 at 05:01 AM  Tag


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