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Minnesota governor eyes fuel price floor repeal

Gov. Tim Pawlenty is polling Minnesota lawmakers on their interest in a special session.

Among the topics being considered for discussion would be repealing a unique law that sets a minimum fuel price.

Intended to protect small fueling stations, the price of fuel in Minnesota is set at the dealer’s cost plus taxes, plus 6 percent or 8 cents per gallon, whichever is less.

Legislation considered during the session that ended in May called for repealing the law. The bill made it out of the state’s Senate but died in the House.

Pawlenty favors a repeal of the law.

Minnesota’s law was enacted in 2001 at the urging of operators of small and medium-sized service stations who were concerned about being undercut by large chains, such as Wal-Mart or Costco.

Wisconsin is the only other state to set a minimum fuel price. The state has had its rule in effect since the 1930s.

The Badger State requires wholesalers to charge fuel stations at least 3 percent more than they paid. Stations in turn must add on at least 6 percent more at the pump.

Legislation in the state’s Joint Committee on Finance would repeal the law.

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