HARTFORD, Conn. -- Connecticut Governor M. Jodi Rell on Tuesday signed into law a bill that rolls back a planned increase in the state gasoline tax and opens the door to more gas stations offering customers a discount for making purchases with cash. Senate Bill 1000, "An Act Concerning Adjustments to Certain Petroleum Products Taxes, Petroleum Franchise Agreements, Gasoline Discounts for Consumers, Home Heating Oil & Propane Gas Contract Deposits & the Fuel Conservation Account," was passed during the special session last week.
Before the session began, Rell asked the state attorney [image-nocss] general 's office for clarification on whether the state could affect franchise agreements prohibiting cash discounts. She then asked the state legislature to both postpone as planned 0.5% increase in the Gross Receipts Tax on motor fuels and to pass a bill nullifying cash discount bans in the franchise agreements.
“Finally, the consumers of Connecticut are getting a bit of a break from the bruising price of gasoline,” Rell said. “I know how hard times are—I pay bills just like any homeowner. And it is clear the state needed to take action, especially since no real change appears forthcoming from policymakers in Washington. So we have taken some important steps to help the families and businesses that are being battered by this horrendous energy price spiral."
She added, “As I have said before, I can 't control OPEC and I can 't set the price of crude oil. I cannot single-handedly force Washington to make effective national energy policy—much as I would like to. That doesn 't mean we can throw up our hands, however. In fact, it means the state has to work harder than ever to provide what relief we can, and that is what this legislation will do.”
Also, Rell sent a letter to each of the approximately 1,200 gasoline dealers in the state, informing them she had signed the bill and urging them to begin offering cash discounts. The governor said any gas station owners who run into difficulties with their parent companies over offering the discounts should contact the Department of Consumer Protection. “The State of Connecticut will intervene where there is any attempt to undermine this effort,” she told dealers.
The bill also establishes new protections for homeowners who make deposits on home heating oil contracts. This action follows the losses suffered by a number of Connecticut residents after a home heating oil contractor went out of business last winter.
“This bill is a good start on helping our hard-pressed consumers,” Rell said. “But it is only a start—we know we cannot rest easy. My administration is committed to fighting for every federal dollar available, demanding real and effective action from Washington and looking for every advantage as this struggle continues.”
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