The New York State Senate today gave final legislative approval to a bill to prohibit discriminatory pricing policies by petroleum companies, reported State Senator Hugh T. Farley (R, C, I - Schenectady.
Petroleum companies use "zone pricing" to determine geographical price zones based on the demographics of a certain area. For example, in areas where competition is limited, wholesalers will charge a higher per gallon tank price to retailers. Gas retailers who are charged more then pass those increased costs onto the consumers at the pump, in many cases affecting those who are least able to pay. This bill (S.175-B) would prohibit zone pricing of gasoline, ending these discriminatory pricing policies.
The bill will be sent to the Governor for his consideration.
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