If a Wisconsin state senator gets his way, the state’s minimum markup requirement for motor vehicle fuel would be eliminated.
Sen. David Zien, R-Eau Claire, has introduced a measure that would strike provisions in state law requiring markups of 3 percent for wholesalers and 6 percent for retailers.
Wisconsin law prohibits the sale of fuel at below cost, which is designed to prevent businesses from selling at a loss in order to drive out competitors.
The Coalition for Lower Gas Prices, a group that includes government and business including – Wal-Mart and Murphy Oil – is pushing for an end to the mandatory markup.
Craig M. Thompson, legislative director for the Wisconsin Counties Association, told the Milwaukee Journal Sentinel revising the markup law would be a way to reduce fuel prices without cutting sales tax on fuel, which pays for road work.
The Wisconsin Petroleum Marketers and Convenience Store Association, a group representing 2,000 fueling stations, convenience stores and automotive businesses, likes the law as it is.
Robert Bartlett, the group’s president, told the newspaper consumers benefit from the current law because more competitors stay in business, saving consumers money through price competition.
SB215 is in the Senate Judiciary, Corrections and Privacy Committee. If approved by both houses of the Legislature, it would head to Gov. Jim Doyle, who has said he would sign it.