Requires certain wholesale pricing of motor fuels be set using formula.
Impact
If enacted, this bill will have a significant impact on the state laws regarding the sale and distribution of motor fuels. It mandates that future contracts between distributors, refiners, wholesalers, or suppliers and retail dealers must adhere to the pricing formula established by the act. Exceptions to these requirements apply to retail dealers who own the property where their stations are located and to pre-existing contracts. Violators of the pricing stipulations face substantial fines, which emphasizes the state's commitment to maintaining compliance and fair practices in the fuel market.
Summary
Senate Bill S3812 aims to regulate the wholesale pricing of motor fuels in New Jersey by requiring that tank wagon prices charged to retail dealers be established through a negotiated formula. This bill directly amends the existing 'Unfair Motor Fuels Practices Act' to ensure that the tank wagon price does not exceed five cents per gallon above the listed terminal price at the time of purchase. This measure is intended to enhance fairness and transparency in the pricing structure for fuel retailers, thereby potentially stabilizing prices for consumers at the pump.
Contention
Points of contention surrounding S3812 might arise from stakeholders within the fuel distribution and retail sectors. Distribution companies might argue that mandated pricing formulas could restrict their pricing flexibility and reduce their profit margins. Retail dealers who may not own their property could voice concerns about their ability to negotiate favorable terms under the new regulations. The balance between fair pricing for consumers and maintaining a profitable business model for suppliers and retailers remains a critical point of debate as discussions continue.