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Repeal of Florida Gas Price Law Sought

Posted on: Tuesday, 23 August 2005, 18:00 CDT

Aug. 23--TALLAHASSEE -- With gas prices nearing the $3 mark in Florida, one state legislator wants to take on the state's gas retailers and convenience store owners and repeal a 20-year-old law that prohibits companies from selling gas at prices below their cost.

The law is supposed to prevent larger oil companies and other retailers, such as Wal-Mart, from selling gas at a price less than what the company paid and squeezing smaller retailers out.

State Rep. Irv Slosberg, a Boca Raton Democrat, says other small businesses, from plumbers to pizza delivery drivers, are being unnecessarily squeezed by high gas prices.

"I'm tired of this nonsense with gas prices," said Slosberg, who planned to file a bill Monday. "We've got to let the free market decide what people might pay."

But it could be an uphill battle for Slosberg, who waged a relentless campaign to change the state's seatbelt laws that was unsuccessful until this year.

During the 2004 election year, the Republican-controlled Legislature wound up offering motorists an eight-cents-a-gallon gas tax break for the entire month of August. But this past spring there was little talk of reviving the tax break a second year. And until Slosberg's proposed bill, legislative leaders have not expressed any interest in tackling anything related to gas prices.

A spokesman for House Speaker Allan Bense, a Panama City Republican whose businesses include a road contracting company, could not say for sure how Bense would respond to the proposed legislation.

"The speaker would be open to sensible solutions to rising gas prices," said spokesman Towson Fraser.

Attorney General Charlie Crist, who has subpoenaed gas retailers in the past year and has faulted mergers in the oil industry as one reason behind rising prices, said he hopes lawmakers do something to help Floridians.

"Anything we can do to get relief at the pain at the pump is important to do," said Crist, whose own investigation found no federal or state antitrust violations. "Gas is darned expensive."

Crist said his office would support Slosberg's bill and would also be in favor of once again slashing gas taxes for motorists.

But any talk of repealing the state's "Motor Fuel Marketing Practices Act" -- the measure Slosberg wants to do away with -- would draw the immediate opposition of the group that represents 5,600 gas stations and convenience stores across the state.

Jim Smith, president of the Florida Petroleum Marketers and Convenience Store Association, said eliminating the law would eventually lead to all gas stations being owned by a handful of retailers and large oil companies, because smaller gas stations would be ill-equipped to offset their losses and would eventually close.

"Why would anyone want to deliberately sell their gasoline for less than it cost unless it was to operate in a predatory fashion?" Smith asked. "I understand the anxiety that Rep. Slosberg's constituents are feeling. We hate the price the way it is as well, but going this way is the wrong way to go. Why not find out why oil companies are making record profits every quarter?"

Smith said retailers would support cutting the state's gas taxes again. But he said it should not be done at the height of hurricane season, noting that retailers reported to the trade group that the tax break caused business to double at some gas stations.

Smith believed the tax break contributed to the gas shortages that gripped the state during the six-week period when the state was pummeled by four hurricanes last year.

"It worked well but it put a tremendous strain on our supply situation," he said.

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WMT,

Source: The Miami Herald

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