Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF1868

Introduced
2/20/23  

Caption

Below cost sales of gasoline prohibition elimination

Impact

The bill aims to amend Minnesota Statutes by repealing the existing law that makes it unlawful to sell gasoline below cost. This change could significantly impact local retailers who will now have the ability to offer competitive pricing strategies, potentially benefiting consumers through lower prices at the pump. Furthermore, it reflects a shift in state policy to allow more flexibility in commercial practices regarding gasoline sales.

Summary

SF1868 proposes the elimination of the prohibition on below-cost sales of gasoline in the state of Minnesota. By amending existing statutes, the bill seeks to redefine the term 'cost' in relation to gasoline sales, providing a new framework for market pricing. Supporters of this bill argue that removing the prohibition will allow for healthier competition among gas retailers, potentially leading to lower prices for consumers. Under the new definition, the cost includes the average terminal price and various taxes, which aims to standardize how retailers can price gasoline.

Contention

There are notable points of contention surrounding SF1868. Opponents express concerns that allowing below-cost sales could lead to unsustainable pricing practices that might undermine smaller gas stations unable to compete with larger chains. Additionally, critics fear that it may initiate a price war that ultimately harms market stability. Supporters, however, argue that increased competition will foster better market conditions and prevent price-fixing by monopolistic entities.

Voting_history

While the voting history of SF1868 is still under review, legislators anticipate robust discussions as stakeholders from various sectors weigh in on the implications of the bill on state commerce and consumer rights.

Companion Bills

MN HF1726

Similar To Commerce; definition of cost modified, and prohibition on below cost sales of gasoline eliminated.

Previously Filed As

MN HF1726

Commerce; definition of cost modified, and prohibition on below cost sales of gasoline eliminated.

MN SF1867

Below cost sales of dairy prohibition elimination

MN SF2219

Historical horse racing prohibition

MN SB888

Eliminating minimum markup requirements and the prohibition on sales below cost. (FE)

MN AB988

Eliminating minimum markup requirements and the prohibition on sales below cost. (FE)

MN HF2697

Prohibition on below cost sales of dairy eliminated.

MN H3181

To study gasoline-focused sales-below-cost

MN H3508

To study gasoline-focused sales-below-cost

MN SB00419

An Act Prohibiting Gasoline Zone Pricing.

MN SF1070

Price discrimination prohibition in commercial transactions

Similar Bills

No similar bills found.