The state of Minnesota recently fined a gas station chain $140,000 for selling gas too cheaply.

As we’ve noted before on this site, these kinds of laws are justified on the grounds that big chains can supplement gas sales with other sales, thereby enabling them to price smaller gas stations out of the market. I’m not convinced that’s true. But if it is true, so what? Why are independently-owned gas stations who sell more expensive gas and don’t offer the benefit of a convenience mart worth saving?

Also, if you’re a big gas station chain, you can’t charge too much, lest you be accused of gouging. But pricing too low brings accusations of anti-competitive practices. Bit of a predicament, isn’t it? (Also brings to mind this joke).

It’s also curious that the governor opposes the fine, which was given by the state’s Commerce Department. Don’t Commerce Departments generally report to the governor? Are things different in Minnesota?

This entry was posted on Sunday, February 26th, 2006 at 9:32 am by Radley Balko and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.