Westport Lawmakers Stand Together to Eliminate Gasoline Zone Pricing
Wednesday, February 13th the Legislature’s Transportation Committee held a public hearing to discuss a range of issues, including a proposal introduced by Transportation Committee Members Senator Tony Hwang (R-28), Senator Will Haskell (D-26), and Representative Jonathan Steinberg (D-136) to prohibit the practice of zone pricing for gasoline (SB 419). All three legislators represent portions of Westport.
Gasoline zone pricing is the practice employed by gasoline distributors to sell gas to local retailers at artificially-determined prices within the same “zone”. These price zones are not mandated by government, and are proprietary and unavailable to the public. Not only do these practices stifle competition, but they create arbitrarily high cost zones, and also prohibit entry to the market because they can control prices to make it difficult for newcomers to succeed.
The FTC has stated that these price zones provide significant market control to incumbent distributors, and that large distributors have used these zones to “target entrants without having to lower price throughout a broader market area….by targeting price-cutting competitors, incumbents can (and have) deterred entrants from making significant investments in gasoline stations (which are specialized, sunk cost facilities) and thus from expanding to a scale at which the entrant could affect price throughout the broader metropolitan area.” (OLR Report 2009-R-0011)
“We who believe in the competitiveness of the market have been trying to eliminate this practice for over two decades and it is time we get this law passed and start encouraging transparency, market competition and consumer fairness in the gasoline market,” said Senator Hwang. “In higher-cost areas of the state, these price zones increase the cost of living even further. Although the cost to distributors does not change, the price to the retailer and the price to the consumer does, based on these proprietary, arbitrary zone pricing maps. This system is inherently non-competitive. It’s time we level the playing field.”
“The gas distributors shouldn’t determine whether you pay $2.25 or $2.55 per gallon of gas based on anti-competitive practices,” said Sen. Haskell. “Our bill would allow for increased competition and fairer prices in the market, helping relieve financial stress on consumers in our community. This bipartisan bill represents a fight to give Fairfield County a break,” said Senator Haskell.
“Our proposal really comes down to fairness for Connecticut citizens, but particularly for Fairfield County residents, who pay the highest per gallon in the state.. All we’re asking for is parity in the gasoline market across the state,” said Representative Steinberg.
(Listen) Sen. Tony Hwang on the Radio w/ Brad Davis talking about DOT Project Prioritization
State Sen. Tony Hwang spoke to Brad Davis about how the DOT needs to prioritize the projects it spends our tax $$$ on.
“What we have right now a mish mash of projects that have no prioritization, no sense of project one through ten, one through twenty,” said Senator Tony Hwang.
See SB717 HERE
Hwang on Recent Toll Proposals (WFSB)
HARTFORD, CT (WFSB) – Tolls could be a tough sell for many here in Connecticut, but some are trying to make them a little more palatable.
One lawmaker is proposing a discount for low income residents.
There are a few plans out there, including one by Governor Lamont.
The state needs revenue and tolls are one way to get it.
Another lawmaker is proposing a discount for people with low incomes and those on a fixed income such as the elderly.
“My position on electronic tolling is very clear. We are going to focus on just on those big tractor trailer trucks and that will raise something like 250 million dollars, something I think I can get through this legislature,” said Governor Ned Lamont.
In his first state of the state address, Lamont announced major transportation improvements. He supports tolls but only on big trucks.
Some Republicans say they don’t like tolls in any form.
“We’ve had very little details. We range from 82 gantries to the amount of money it will raise, all of it is speculation,” said Senator Tony Hwang.
Republicans say there are other ways to pay for transportation, prioritizing what they borrow money for, but that could mean less money for cities and towns.
As for details, we may learn more when Lamont makes his budget address next week.
