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Pennsylvania to Allow Half-Gallon Pricing at Older Fuel Pumps

Posted on: Monday, 26 May 2008, 09:00 CDT

Pennsylvania governor Edward Rendell has given permission for fuel retailers with older fuel pumps to display half-gallon prices, with the total cost of gas remaining the same. This comes as gas prices have exceeded $4 per gallon in some areas of the state.

The governor has said that older, non-digital fuel dispensers cannot compute prices exceeding $3.99, making it necessary to allow half-gallon pricing until upgrades can be made.

According to the half-gallon pricing mechanism, signs advertising fuel prices must still advertise the price for a full gallon of gas or diesel, but the price displayed on the pump will be half the per-gallon price.

Fewer than 500 fuel dispensers are estimated to be affected by the half-gallon pricing, which is approximately 0.4% of gas pumps of the 108,000 retail fuel dispensers in the state of Pennsylvania.

To receive temporary approval from the Department of Agriculture, gas stations must order an upgrade kit that will allow the motor fuel dispenser to display and compute unit prices of $4 per gallon and higher. Proof of the order must be shown to department inspectors upon request, along with a reasonable date by which the upgrade kit will be installed.

Mr Rendell said: "With rapidly increasing fuel prices, I am allowing gas stations with older model pumps to temporarily implement half-gallon prices. Most retail fuel stations in Pennsylvania can display per-gallon prices over $4, but we will accommodate those that cannot, allowing business to continue and ensuring consumers get what they pay for."

Source: Datamonitor

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