Senate Votes To Veto Gasoline Zone Pricing
Posted on Tuesday, 19 of August , 2008 at 8:53 pm
ALBANY—The New York State Senate gave final legislative approval Tuesday to a bill to prohibit discriminatory pricing policies by petroleum companies.
“We’re continuing to see sky-high prices for gasoline,” said bill sponsor Sen. James Alesi R-C Perinton). ”One of the underlying contributors to the high gas prices, especially in upstate New York, is a little known practice known as ‘zone pricing’. The oil companies know that through ‘zone pricing’ they can target certain areas where people are more apt to pay higher prices for gasoline. This legislation will put an end to that practice, making it illegal and ultimately saving people money.”
Petroleum companies use “zone pricing” to determine geographical price zones based on the demographics of a certain area. For example, in areas where competition is limited, wholesalers will charge a higher per gallon tank price to retailers. Gas retailers who are charged more then pass those increased costs onto the consumers at the pump, in many cases affecting those who are least able to pay.
This bill (S.175-B) would prohibit zone pricing of gasoline, ending these discriminatory pricing policies.
The bill will be sent to the Governor for his consideration. 8-19-08
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Category: Business, Consumers, Government, New York State
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