Louisiana governor signs anti-fuel markup

| 7/19/2005

Gov. Kathleen Blanco has signed a bill into law abolishing a mandatory 6 percent markup on motor fuels in Louisiana. The new rule took effect June 29.

The new law also prevents retailers from selling gasoline and diesel at prices below what they paid for it. The rule, however, provides that discounts offered through credit, debit or shopping cards, as well as for promotional purposes, grand openings, anniversaries or promotional sales, shall not be considered in determining whether a sale is below cost.

Supporters said the new law will promote competition by leveling the playing field for fuel retailers, making sure large companies cannot drive smaller businesses from the market by selling fuel at a loss, The Advocate in Baton Rouge, LA, reported.

The new rule, previously HB763, is not expected to have much effect on prices at the pump.