Fueling Litigation: Gas Station Sues Over 'Too Low' Prices

[NFS4]

Too low???? Screw YA'LL!! 😛

http://www.nbc17.com/money/4423867/detail.html

The Pantry Inc., which is based in Sanford and operates the Kangaroo chain of convenience stores and gas stations, recently filed suit against Sheetz Inc., claiming that chain broke North Carolina law by selling gas too cheaply at its station in Fuquay-Varina.

When Sheetz opened the store on North Main Street in Fuquay in February -- the Pennsylvania-based chain?s first store in the region -- it offered regular unleaded gas for $1.56 a gallon, which was about 25 cents below the prevailing price at the time.

 

[Vette73]

I live here is Raleigh NC and I like to know what law says you can;t sale gas to cheap? Only thing I can think of is if it is sold below cost to drive out business, ala wal-mart.

State law puts a floor price on what gas stations can charge in order to prevent one chain from dumping gas on the market in order to drive out competition.

OK that is it.

 

[NFS4]

Originally posted by: Marlin1975
I live here is Raleigh NC and I like to know what law says you can;t sale gas to cheap? Only thing I can think of is if it is sold below cost to drive out business, ala wal-mart.

Cheapest I've seen around here lately is $2.13 at the K-Mart in Garner Station. Haven't been to South Saunders Street lately, but they normally have some cheap gas.

My dad says that it's 2.06 back home in Burlington though

 

[MikeMike]

there is a reason Sheetz rocks. we dont have one close enough to my home however in order to make it worthwhile.

MIKE

 

[Vette73]

Originally posted by: NFS4

Originally posted by: Marlin1975
I live here is Raleigh NC and I like to know what law says you can;t sale gas to cheap? Only thing I can think of is if it is sold below cost to drive out business, ala wal-mart.

Cheapest I've seen around here lately is $2.13 at the K-Mart in Garner Station. Haven't been to South Saunders Street lately, but they normally have some cheap gas.

My dad says that it's 2.06 back home in Burlington though

Yea the super walmart between raleigh and knightdale is 2.13 and with the wally card it is 2.10. So that is the best I can find so far. 🙁

 

[poncherelli2]

theres a very good reason for that law

 

[Vette73]

Originally posted by: poncherelli2
theres a very good reason for that law

And that is?

 

[everman]

Price fixing is illegal too...

 

[Paulson]

Didn't standard oil and other companies drive out local mom and pop shops by keeping prices well below competitors and then once the small business couldn't survive the shot up the price?

I seem to recall that...

 

[DainBramaged]

I had to pay 2.349 for premium tonight. 🙁

 

[rh71]

We had a Sunoco gas station here which opened up and started selling at least $0.15 below everyone else... there's about 3 gas stations within the same block. It was all good for a few months, even the Mobil right across the street had to drop their prices to compete. When that Sunoco finally went out of business (or whatever reason they packed up and left), Mobil immediately shot up $0.10.

I really wonder what the cause of death was... pressure from others in the area, low profit, etc.. people were certainly lining up for their gas... even in the rain when there's no overhang (and there are for the others).

 

[poncherelli2]

gas stations must sell their gas for something like 10cents per gallon more than what they paid for it (i dont know the exact number). If they bought gas when it was cheaper, filled their tanks, and oil prices shot up the next day, they can sell that gas at a below market price (but still a markup on what they paid for it). However, after a few days, competitors will notice if they are still below market price and have filled up with newer expensive gas and report the station in violation.

The reason for this is, gas stations would keep cutting prices to compete with each other until they operated on razor thin profit margins. In doing this, they would also drive up the demand for gas which would increase then increase the price anyway. By requiring stations to build a certain profit into the price, it stymies a price cutting frenzy that would ultimately just drive up the demand for gas.

 

[KK]

I like their chili dogs.

 

[Linux23]

Originally posted by: NFS4

Originally posted by: Marlin1975
I live here is Raleigh NC and I like to know what law says you can;t sale gas to cheap? Only thing I can think of is if it is sold below cost to drive out business, ala wal-mart.

Cheapest I've seen around here lately is $2.13 at the K-Mart in Garner Station. Haven't been to South Saunders Street lately, but they normally have some cheap gas.

My dad says that it's 2.06 back home in Burlington though

I hope these are prices for premium fuel because gas prices in the south are normally always lower than gas prices here up north.

 

[dmcowen674]

Originally posted by: poncherelli2
gas stations must sell their gas for something like 10cents per gallon more than what they paid for it (i dont know the exact number).

The Law is 6% here in Louisiana.

The Commissioner here shuts down any stations that do not conform to the rule.

So bascially all the stations are at the same price, sometimes a penny or two difference.

 

[Vette73]

Originally posted by: Linux23

Originally posted by: NFS4

Originally posted by: Marlin1975
I live here is Raleigh NC and I like to know what law says you can;t sale gas to cheap? Only thing I can think of is if it is sold below cost to drive out business, ala wal-mart.

Cheapest I've seen around here lately is $2.13 at the K-Mart in Garner Station. Haven't been to South Saunders Street lately, but they normally have some cheap gas.

My dad says that it's 2.06 back home in Burlington though

I hope these are prices for premium fuel because gas prices in the south are normally always lower than gas prices here up north.

Nope. 2.1X is the common price here in the raleigh area. Heck the Exxon right across the street at the corner of six forks and millbrook is charging $2.35 for Reg.

 

[Kelemvor]

There are laws that gas statiosn have to sell the gas for at least a certain amount over what they pay for it. When you take the price of gas, you have to add on state taxes, federal taxes, and gas station taxes to get what they can sell it at. We had stories before of one gas station selling it for so cheap that another gas station brought a tanker truck over and started filling up because they were selling it for less than the other company could even buy it for.

It's good since one company can't drive out another company and then jack up their prices, but it's also crap because gas prices are high enough as it is. And especially here in WI which has the highest freaking gas tax in the dountry.

 

[kranky]

Originally posted by: poncherelli2
gas stations must sell their gas for something like 10cents per gallon more than what they paid for it (i dont know the exact number). If they bought gas when it was cheaper, filled their tanks, and oil prices shot up the next day, they can sell that gas at a below market price (but still a markup on what they paid for it). However, after a few days, competitors will notice if they are still below market price and have filled up with newer expensive gas and report the station in violation.

The reason for this is, gas stations would keep cutting prices to compete with each other until they operated on razor thin profit margins. In doing this, they would also drive up the demand for gas which would increase then increase the price anyway. By requiring stations to build a certain profit into the price, it stymies a price cutting frenzy that would ultimately just drive up the demand for gas.

I have to say that is just incorrect.