Gas stations sue a rival station for selling gas too cheap

As of at present, March 22, 2022, AAA stories that the common value for a gallon of gasoline in the USA sits at $4.24. Clearly, that is topic to alter, and because it’s a mean, the precise value for somebody in a single a part of the nation might be completely different for consumers in one other. Regardless, based mostly on latest historical past, that is much more than drivers are used to paying for a gallon of fuel. So that you’d suppose a fuel station might drum up fairly a little bit of enterprise for pricing gas lower than its rivals, proper? Not so quick, no less than for those who’re in Wisconsin.

A fuel station managed by Woodman’s Market in Waukesha, Wisconsin, was just lately sued by two rivals who say it has priced its gas artificially low. In line with native ABC affiliate WISN, homeowners of Shell and BP stations declare that Woodman’s is breaking the legislation by promoting fuel for lower than the station itself paid for it. Apparently, that is against the law in Wisconsin, and the rival stations are suing for damages totaling $80,000 every. That is apparently based mostly on the variety of days they declare that Woodman’s illegally undercut them.

Woodman’s counters that it is not breaking Wisconsin’s so-called Unfair Gross sales Act as a result of it has priced its gas to compete with a close-by Costco fuel station. As you possibly can see by clicking on Autoblog’s personal low-cost fuel finder, Costco typically costs gas decrease than different stations, which it could do as a result of a good portion of its earnings are derived from membership charges. Costco will not promote fuel to drivers that do not pay these membership charges, in contrast to different stations like Shell, BP and Woodman’s.

We’re not authorized consultants, so we won’t actually touch upon the deserves of this lawsuit, however, as WISN discovered when polling pumpers pumping fuel, Woodman’s tactic to cost its gas decrease than different stations appears to be working. “How come you pump your fuel right here at Woodman’s,” the reporter asks. “Woodman’s has one of the best costs,” comes the seemingly apparent reply.

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