What's happening
This bill amends laws to prohibit gasoline producers and refiners from using zone pricing based on retail outlet location, aiming to prevent unfair price differences.
Why it matters
Targets price discrimination by location. By barring gasoline producers and refiners (not just wholesalers) from using zone pricing, the bill aims to stop companies from charging higher rates simply because a station is in a particular area, potentially reducing geographic price gouging.
Narrows legitimate pricing factors. The bill clarifies that only “additional costs” like transportation, replacement, and taxes can justify price differences—not arbitrary market zone distinctions—making it harder for companies to mask unfair pricing practices.
Aims to increase consumer equity. By ending zone pricing, the law is designed to limit artificial price hikes that disproportionately impact consumers in certain neighborhoods or regions, promoting fairer access to motor fuel across the state.
Shifts accountability up the supply chain. By specifically including producers and refiners, not just wholesalers, the legislation seeks to address price manipulation at the highest levels of supply, which could have a broader, more systemic impact on retail gasoline pricing.
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Who cares
Headline styles
Limit Gasoline Zone Pricing
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to consumer affairs and protection
- Referred to consumer affairs and protection
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3249
2017-2018 Regular Sessions
IN ASSEMBLY
January 27, 2017
Introduced by M. of A. BRINDISI, SKOUFIS -- read once and referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to zone pricing of gasoline; and to amend chapter 579 of the laws of 2008 amending the general business law relating to zone pricing of gasoline, in relation to making certain technical changes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 1 of section 399-ee of the general business law is relettered paragraph (a-1) and a new paragraph (a) is added to read as follows:
(a) "Additional costs" means all replacement and transportation costs and taxes incurred.
§ 2. Paragraph (g) of subdivision 1 of section 399-ee of the general business law, as added by chapter 579 of the laws of 2008, is amended to read as follows:
(g) "Relevant geographic market" means the geographic area of effective competition among retail outlets.
§ 3. Paragraph (m) of subdivision 1 of section 399-ee of the general business law, as added by chapter 579 of the laws of 2008, is amended to read as follows:
(m) "Zone pricing" means the establishment of arbitrary price differences based on the geographical location of the retail outlet within the relevant geographic market, [based on] without regard to the posted terminal price [or] and any additional costs where the effect is to injure competition.
§ 4. Subdivision 2 of section 399-ee of the general business law, as added by chapter 579 of the laws of 2008, is amended to read as follows:
2. No [wholesaler] producer or refiner shall engage in zone pricing with respect to any motor fuel of like grade or quality, which is supplied to a dealer or wholesaler which operates retail outlets.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01974-01-7
A. 3249 2
§ 5. Section 2 of chapter 579 of the laws of 2008 amending the general business law relating to zone pricing of gasoline is amended to read as follows:
§ 2. Legislative findings and intent. The legislature hereby finds and declares that for the past several years motor fuel prices have greatly fluctuated. In some cases, price fluctuations are caused by natural market conditions. In other cases, fluctuations result from artificial manipulation of the market. One such artificial pricing manipulation is zone pricing. Zone pricing is the setting of different wholesale prices for retail motor fuel [that operate in different geographic areas] based on geographic location. Zone pricing increases the price of retail motor fuel for certain consumers, leading to inequities among consumers and regions around the state. Therefore, the legislature hereby declares that while natural market occurrences may lead to price fluctuations, artificial changes in motor fuel prices unfairly harm many consumers around the state.
§ 6. This act shall take effect on the thirtieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.