Lawmakers Side with Small Retailers on Fuel Law
None by KCPW
(KCPW News) A measure created 25 years ago by the Utah Legislature makes it illegal for a big fuel company to price its gas too low or offer ridiculous incentives in order to lure customers. The Motor Fuel Marketing Act was designed to protect the mom and pop shops from being driven out of business by a big chain.But today Utah Attorney General Mark Shurtleff says the Act hurts consumers, and he's asking the legislature to let it expire next year.
Shurtleff adds that given today's high gas prices, he's not eager to go out and prosecute a company because its gas is too cheap.
Shurtleff says other laws exist to address anti-competitive behaviors. But Representative Ben Ferry - who wanted to extend the act for ten years, rather than five - doubts those laws are sufficient.
A committee of lawmakers sided with fuel retailers who claim they still need protection from the big guys. Lawmakers are recommending the Motor Fuel Marketing Act be renewed for another five years.
Email to a friendPosted in KCPW Newsroom and Legislative Coverage. Copyright 2009 KCPW
1. Edwin O. Miner said:
Both the blame and the responsibility for Utah's gasoline "gouging" should be laid at the feet of The Utah Petroleum Retailers Association. Pure and simple UPRA continues to act with impunity to foster their own self-serving, irresponsible, price-fixing, to hell-with-the-public's-interest attitudes.
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