Senator Kenneth P. LaValle today announced that a measure he cosponsored to ensure fair gasoline pricing across the state has passed both houses. “The Consumer Protection and Fair and Equitable Motor Fuel Pricing Act of 2008” would prohibit the discriminatory practice of zone pricing as a marketing device for gasoline.
According to Senator LaValle, zone pricing is a demographic marketing tool used to establish a regional pricing system. Petroleum companies are using this technique to determine selling prices for gas retailers across the state. Under this system, stations in more affluent areas are being charged higher prices, which in turn is being passed on to the consumer at the pump. The measure passed by the Legislature would prohibit this discriminatory pricing policy for gasoline and ensure equitable gasoline prices, regardless of the demographics of a region.
“Skyrocketing gasoline prices have been burdensome for motorists, let alone being charged even higher prices based on the affluence of a region,” said Senator LaValle. “Oil companies continue to record billion dollar profits and should be prohibited from adding to that through the use of such discriminatory practices.
“This measure will be particularly helpful to East End residents where gas prices are typically higher than their up island neighbors,” concluded Senator LaValle.
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