Fuels

N.Y. to Ban Zone Pricing?

Pending bill sent to governor

ALBANY, N.Y. -- The New York State Senate passed a bill (S.175-B) this week banning gasoline price zones, where wholesale retailers can have a 20-cent or more difference in fuel prices depending on the location, according to a WHAM-TV report.

For example, the BJ's station in Victor charges members $3.85 a gallon, while the station in Henrietta charges $3.62. There has been a price war of sorts among gas stations on and near West Henrietta Road, the report said.

Consumers have noticed the difference and say there is no reason there should be such a price difference between the east [image-nocss] side of town and the west side.

Jillian Cowles of Spencerport, N.Y., told the news outlet, "The stereotype that I know of, that people have said to me before, that people in Victor, Fairport, Penfield and Webster have more money than maybe someone in Henrietta, Spencerport and Brockport.”

Nadine Colbert of Canandaigua said, "Yeah, I don't think it's fair, not equitable. I mean we're struggling as it is; families are struggling to make ends meet now."

"We're continuing to see sky-high prices for gasoline," the bill's sponsor, State Senator James Alesi (R), said in a statement. "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."

Senate Majority Leader Dean G. Skelos (R), added, "New Yorkers continue to be burdened by increasing costs for everything from energy to property taxes, and across the state, many families are having difficulty making ends meet. Zone pricing is an unfair pricing policy that forces higher prices at the pump. This bill will put an end to this discriminatory practice and save New Yorkers money at the pump."

Alesi told WHAM, "This will protect the poorest people from the highest prices of gasoline. And it will protect the average person from inconsistencies."

Governor David Paterson still needs to sign the bill. If the bill is passed, gasoline companies would be fined $10,000 for establishing price zones based on demographics.

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