The Gasoline Price Wars?

Pizza Hut and Domino's Pizza routinely lower their prices to get you to gorge on their foods. Cingular, Net1o and T-Mobile compete against each other with the best plan (i.e. cheapest with the most accessories) to get you to join. NetFlix (an online company that mails you rented movies) offers cheaper more convenient services than Blockbuster.




So, why is it that most gas stations have the same price for gasoline? Is it simply supply and demand or is it something more sinister?

Well, that depends on your point of view. Many gas stations in the United States are sometimes forbidden by law to lower gas prices. This is because of the
minimum gas price laws in some states.

In blogger short hand, this means gas stations in some states can't sell gasoline below a state mandated guideline. If, for example, Maryland's independent gas stations owners wanted to sell their gasoline at $1.25 a gallon(what a dream) but the minimum gas price was set at $2.00 a gallon, the gas stations would have to obey the law.

Why? The theory was to prevent companies like large companies like Costco and McDonalds from selling gasoline as cheaply as possible and forcing independent gas stations to match them.

ITBO (In this blogger's opinion) there are two ways of looking at this. One, minimum gas price laws does keep Costco, Wal-Mart and other large chains from pricing out independent gas stations BUT if the minimum price is too high for the average family this law blocks competition because gas stations that charge the same high price have the law to fall back on.


Fuel Mode supports more competition in the energy field not less. Not only more competition in the oil business but more competition from alternative energy sources.

The following links explain gas minimum price laws better than I do:

High Gas Prices? It's The Law by Michael Hampton

State Committee Decides Against Minimum Gas Mark Up Repeal by Carloyn Smith

Retailers Feeling The Pinch Of Gas Prices, Too by Eric Litke

Minimum Gasoline Prices by Walter E. Williams