State of Wisconsin Orders Gas Station Owner to Raise Prices

The state of Wisconsin has ordered a service station owner to raise the station's gasoline prices. The owner of a BP service station in Merrill, Wisconsin had set out to help senior citizens and people who support youth sports programs by offering discounts on gasoline. But the state has claimed the discounts are illegal and ordered him to raise his gas prices.

Raj Bhandari is the owner of the Center City BP station in Merrill. The Associated Press reports Bhandari had offered a gasoline discount of two cents per gallon for senior citizens. He also offered a discount card allowing sports boosters a price break of three cents per gallon. One patron, Dale Van Camp tried to support the local youth hockey program by purchasing a fifty-dollar card. Van Camp said the card would have saved him about one hundred dollars per year on gasoline.

But the Wisconsin Department of Agriculture, Trade and Consumer Protection has objected to the discounts. The state's Unfair Sales Act requires gas stations to sell gasoline for 9.2 percent more than the wholesale price. The AT & CP Department says Center City BP's discount offers violate the Unfair Sales Act.

Bhandari said that he received notice in April from the state auditor that the state would file a lawsuit against him if he does not raise gas prices. "In our case, it's cutting the state margin," he told the Wausau Daily Herald. He could be subject to a penalty for each gallon of discounted gas he has sold. If that happens a judge will determine the amount for Bhandari's fine. Van Camp said he has asked state representative Don Friske (R-Merrill) to consider amending the law. The change would allow locally owned stations to offer discounts that would benefit local schools.

Pain at the pump

Credit: Associated Press

Copyright: Associated Press