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Sunday, February 26, 2006

Posted 2/26/2006 12:18:00 PM by Douglas

The State of Minnesota: Looking out for its citizens in this time of sky-rocketing gas-prices.
The Minnesota Commerce Department on Thursday announced plans to fine a gas station chain $140,000 for repeatedly selling gas below the state's legal minimum price.

The fine against Midwest Oil of Minnesota is twice as large as any imposed on a company since 2001, when the state established a formula based on wholesale prices, fees and taxes to determine a daily floor for gas prices.

The price law was intended to prevent large oil companies from driving smaller competitors out of business, but some critics argue it fails to protect consumers.
As with the case with most bad laws, if you squint hard enough you can kinda make out their intent here (big company, sells on the cheap, kills competition, jacks up prices), but it's hard to imagine how anyone selling a commodity like gasoline too cheaply. Still, if the state sets a "minimum legal price" and you intentionally sell below that price, you're asking for trouble. Stupid laws don't get corrected by simply ignoring them.


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