TALLAHASSEE, Fla. -- Florida lawmakers say they have found a way to lower Florida's gasoline prices, reported the Miami Herald. State Representative Irv Slosberg (D) has teamed with two Republican legislators to try to repeal parts of a 20-year-old law that prohibits gas stations from selling fuel for less than they paid for it, said the report.
What we're trying to do is change an antiquated statute, State Senator Nancy Argenziano (R) told the newspaper. We're trying to save the consumer every cent we can at the pump.
The law [image-nocss] they want to change, the Motor Fuel Marketing Practices Act, was passed in 1985 and was intended to prevent large gasoline retailers from squeezing out smaller, independent sellers. The bigger companies otherwise would be able to lower their gasoline prices below cost, theoretically driving the independent retailers out of business.
Florida's governor, attorney general and agriculture and consumer services commissioner also expressed their support of the measure.
Slosberg said competition is good for consumers. Independent gasoline retailers continue to operate successfully in other states where there is no law against selling below cost, he added.
Slosberg estimated that amending the law could reduce gasoline prices by seven cents a gallon. For a Florida driver who fills a 15-gallon tank once a week, that translates to a savings of about $55 a year, he said.
The Sales Below Cost portion of the act keeps gasoline prices higher than they would be without the law, according to repeal proponents, added an Orlando Sentinel report.
A repeal would be good news for Wal-Mart and Murphy Oil Co., which offer discounted gasoline at pumps outside Wal-Mart Supercenters throughout Florida, the report said.
We're not trying to hurt anyone out there, the smaller guys [independent gas station owners], Argenziano told the paper. We're asking for competition.
Of Florida's approximately 9,600 gas stations, about 5,300 are independently owned or run by small retail chains, according to Jim Smith of the Florida Petroleum Marketers & Convenience Store Association, which opposes repeal. The remainder, he said, are stations owned and operated by the large oil companies, such as Shell, BP and Exxon. Smith predicts repealing the law would create only a short-term price break to consumers. Eventually, he argued, independent-owned stations would be run out of business and prices would go up if the law is repealed.
It's a predatory action, Smith told the paper concerning the repeal plan. They [refiner-owned stations] would eliminate us and sell at whatever price they want.
If history is a guide, said the Sentinel, the legislative proposal will face an uphill battle. In 2001, then Attorney General Bob Butterworth and others failed to overcome objections from independent stations to abolish the law.
Despite backing this year from Governor Bush and influential Republicans, Argenziano concedes the plan, embodied in SB2072 and HB 909, will be lucky to come to a floor vote. I hate to say it, but I think it's going to get squashed [in committee], she told the paper. If it gets to the [House or Senate] floor, who's going to be against voting to give cheaper gas?Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.