Views on News • February 13th, 2009

Minimum markup runs out of gas

by Chris Lato

For now, at least, Wisconsin’s archaic minimum markup law is down for the count. The Depression era law, which requires gas stations to markup the wholesale price of gas, was seen as a way to prevent some (read: larger) gas station chains from slashing their prices to drive others out of business, then hiking prices back up.

In reality, the minimum markup is anti-competition and deserves to die, especially at a time when the economy is hurting. Granted, the price savings wouldn’t be huge (estimated at up to 8 cents a gallon) but there will be an impact.

This law has opposition across the political spectrum - Democratic Gov. Doyle supports repeal, and Republican state reps are planning to draft a bill that would do away with minimum markup on all products.  On the other hand, the current Democratic leadership in the Legislature is said to support minimum markup.

This issue has been around forever. As a reporter, I attended a news conference in Madison in, I believe,  the late-1990s in which Scott Jensen and Shirley Krug joined forces (!!) to seek repeal of the law. Talk about strange bedfellows.

Years later, is the end finally at hand?

Attorney General Van Hollen is said to be considering whether to appeal. Let’s hope he decides against it.

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