ALBANY, N.Y. -- New York state gas station owners have been posting fliers at their pumps supporting a bill before Governor David Paterson that they say could lower gasoline prices by up to 20 cents per gallon, reported The Times Union. The bill, sent to Paterson's desk on Monday, would force oil companies such as ExxonMobil, Hess and Sunoco to allow their station owners to also sell "unbranded" gasoline they often can buy at a significant discount.
Major oil companies such as ExxonMobil make their station owners sell only their own branded fuel. The legislation, known as the open supply [image-nocss] bill, would "null and void" any contract provisions that prohibit a station from selling unbranded gasoline as long as they own their own tanks and pumps. Previous versions of the bill have circulated in the state legislature before, but with gasoline prices at historic highs, it has received more support this time around, said the report.
"We think it's a great idea," Ralph Bombardiere, executive director of the New York State Association of Service Stations & Repair Shops, told the newspaper. "There's no competition at the wholesale level. This would level the playing field to some degree."
Bombardiere said unbranded gasoline can sell for as much as 20 cents less per gallon than branded gasoline.
Under the bill, station owners would have to clearly price and label unbranded gasoline, according to the report. No other state in the country allows the practice.
Paterson is not saying whether he supports the legislation. Spokesperson Erin Duggan told the paper that the governor's legal counsel is reviewing the legislation.
ExxonMobil spokesperson Betsy Eaton told the Times Union that the company has not taken a position on the bill. She referred questions about it to the New York State Petroleum Council.
Michael Doyle, executive director of the council, said his group opposes the bill, saying it does not allow the oil companies to control their own gasoline. He said it is impossible to know if branded and unbranded gasoline is getting commingled as tanks are emptied and refilled with the different types. He said the oil companies spend too much on their brands and image and invest too much in station owners to allow that to happen.
Christian King, who owns Mobil stations around the New York region, said he has not supported the bill in the past, but now he has agreed to give it his support. He said if it gets signed by the governor, he would not offer unbranded gasoline right away. He told the paper that he expects that the move would force ExxonMobil to lower its prices to him instead. "Ultimately it will be a benefit to the consumer," he said.
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