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Thursday, September 29, 2005

Repeal minimum gas price law?

There is a renewed push to repeal the minimum gas price law. This law requires gas stations to sell gas for at least eight cents over the wholesale price. It is designed to protect small businesses from large chains like Wal-Mart that can sell gas at a loss; however, there is doubt as to whether this law actually helps.

While I do understand the concerns of small businesses and the risks of monopolies, I have to take the libertarian side of this and say that the law should be repealed. I tend not to like minimum-price laws. Let people sell things at a loss if they want.


At 2:03 PM, September 30, 2005, Anonymous Anonymous said...

"It is designed to protect small businesses from large chains like Wal-Mart that can sell gas at a loss"

That's why they did it?? Yeah, that'll bring down the Wal-Mart empire.

At 7:39 PM, September 30, 2005, Blogger halfback jack said...

It is not about bringing down the Walmart empire. It is about providing a smidge of (and I do mean a small amount of smidge) protection for smaller businesses that would never have a chance to compete against the likes of SuperAmerica, BP, etc. if they were allowed to lowball gas.

After the independents and smaller operators are gone, the big boys would be able to jack up the price and control the market all the way to the gas pump.

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At 7:03 PM, October 04, 2005, Anonymous Anonymous said...

Can you say "A-N-T-I-T-R-U-S-T?

There is so much considation and non-competiveness in teh gas industry that the big players could wipe out -- and I mean wipe out the smaller competition. Don't be naive. Once that occurs, the prices will go much higher permanently. There is no "free market" of oil and gas. Your libertarian argument rests on a faulty premises (ie that there is a free market). What we have are defacto monopolies or quasi- monopolies that are very powerful and connected. Do you work for Exxon Mobile??

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At 8:24 AM, November 23, 2009, Anonymous Anonymous said...

I would be 'for' the protection of small business if someone would post the wholesale price on a daily basis. This would let us know when SuperAmerica, aka Marathon, aka Speedway, and whatever other names they have jack the price for no reason.

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