An ethanol-pump owner says he wants to lower his prices but the state won’t let him.
Badger State Ethanol in Monroe charges around $2.22 for a gallon of E-85, an alcohol-fuel mixture that is 85 percent ethanol and 15 percent gasoline, by volume.
Badger’s owners wanted to cut the price to $2 but said they had to hike prices after some competitors complained Badger wasn’t meeting the state’s minimum markup law.
That law is “antiquated” and the governor and Legislature should eliminate it, said Gary Kramer, the president and general manager of Badger State Ethanol.
“It’s not a realistic price,” Kramer said. “It’s a price that’s grossly inflated over what we’re receiving here at the plant.”
Kramer blamed the petroleum industry, saying it helped set base fuel prices used by the state.
State after state, we get to see politicians and agencies put in office to work on behalf of citizens — who ignore any responsibility to work on behalf of those citizens. Whose pocket do you think these guys live in?
Shhh,
Be Very very quiet,
Im hunting Politicians….
I would suggest Sueing the state, as the E85 product ISNT the same as the Gas product.
Just Big Oil wants. Laws like these must be repealed. It’s no doubt that they are paying off the politicians. We must stop being fossil fuel junkies. It seems that no matter how much people try to get off the oil habit, the oil companies own the government, and are determined to grab our last penny.
the Law was started with the problem that Big companies were DROPPING there prices when independants came into an area.
This would force the independants out.
Its a decent Law, but it MUST regulate EQUAL products.
Oil to oil products.
Alcohol to Alcohol products..
ECA — sounds perfectly reasonable and similar to laws in the few states interested in equitable competition.
BUT — when you’re called the Consumer Protection whatever, sounds like the mandate should be to act on behalf of consumers in the marketplace — instead of rote bureaucrats kissing the butts of oil company chains.
One way or another, the corporations manage to jack laws around so they’re anticompetitive. Oil, entertainment, big-box retailers, war industry… our politicians report to them directly. Who was it recommended merging corporate and government power? Oh yeah. Mussolini.
Wal Mart fights these laws in the various states where it sells gasoline. (Around here they’re called “Murphy’s”).
If Wal Mart is agin it, I’m fer it.
#6
Proving that Wal mart may not actually be 100% bad…
#6 Wal-Mart isn’t really fighting those laws Murphy Oil USA is fighting those laws. and Murphy is a real oil company not just a trade name for Wal-Mart gas stations.
They’re based right here in my home town El Dorado AR
http://www.murphyoilcorp.com/
Price floors are nothing new. They are used for agricultural products all the time. I mean, you certainly wouldn’t want a favored few people to have to face the same market realities as everybody else.
The law is the law and you don’t like it, let your representative know. If there is a loophole in the law making people pay much more then is reasonable or normal, then the politicians should fix it. Or answer why at election time.
Breaking Wind…
Doyle: Don’t Enforce Gas Minimum Markup On Ethanol
Officials Investigating Ethanol Plant’s Pricing
MADISON, Wis. — Gov. Jim Doyle Tuesday ordered state investigators to leave alone gas stations that sell gas with mostly ethanol below the state’s minimum markup requirements.
WISC-TV reported Monday night that Badger State Ethanol in Monroe was being investigated for selling gas with 85 percent ethanol at about $2 a gallon. Gasoline is selling for over $3 a gallon.
Under the minimum markup law, the state told the ethanol plant manager that ethanol should be selling for over $3 a gallon.
The 1930s-era law requires wholesalers to charge gas stations at least 3 percent more than they paid. Gas stations in turn must tack on at least 6 percent more at the pumps. The law’s supporters said it prevents large retailers from underselling smaller gas stations and driving them out of business.
But on Tuesday, Doyle directed the state Department of Agriculture Trade and Consumer Protection not to enforce the law on ethanol.
“It’s a difficult issue. I mean both sides have legitimate arguments,” Doyle said. This law was passed at a time that it was designed to protect the little guy against the bigger people. But it used to apply to ever single product. Now it only applies to gasoline.”
Once again this is what happens when government puts their hands into something they frankly have no business touching.
That knife cuts both ways.
With if the oil companies felt threatened by ethanol? They could, for a few weeks or months, lower the price of their product to drive the ethanol companies out of business.
It is an unfortunate reality that there are not enough producers of critical fuel products to assure that competition works to deliver the most effecient product. They can, with out too much of a problem, keep new competing products off the market by denying them the profits they need to survive.
That is why they are not allowed to sell a product for less than a given mark up.
If it can be done cheaper, why SHOULD it cost more? None of these crooks should be charging what they’re charging anyway. Washington DC is full of politicians who have lots of money tied up in petroleum, why would the investigate these crazy prices and price gouging….they’d be cutting into their own profits! DC isn’t the only place politicians are making lots of money from this….I understan this. I think, as a working man, that all of these criminals should be forced to step down because it is a conflict of interrest….they are not helping the PEOPLE, they’re helping themselves!
I remember 14c per gallon gas in Milwaukee like in 1967 or abouts…
caused by a gas war. can you believe it! I think it cost me like 2.50 to fill up!!!
gas in madison right now is 3.19
i found an old blog of mine from mid july of ’05 and i was complaining of a $25 fill-up. now i i’m looking back at THAT fondly as i pay $30-$32 a fill-up.
As a former resident of Madison, I feel no pity for you. It’s Madison: 27 square miles surrounded by reality.
OK,
We need to protest.
1 day aweek, EVERYONE has to NOT use their car/truck/SUV and say..
I cant go to work becuse it COSTS to much.
With the profit margins these corps are making, its a wonder we ALL dont have $1,000,000 EACH in our pockets.
The (regulated) petrol price in South Africa is currently about $3.52/gallon at the coast. Anyone paying less than that shouldn’t complain.
Few people understand the differences between illegal crime–the common, every day variety–and “legal” crime.
When this avenue is adequately explored by consumer protection agencies, something will be, indeed, accomplished.
–Jack Payne
http://www.sixhrs.com