George Will takes on Wisconsin’s minimum markup law on gas in this column today. He says:
Pelosi and others who just know, evidently intuitively, the “fair” price of gasoline must relish what has happened in Merrill, Wis., where Raj Bhandari owns a BP gas station. He became an outlaw when he had what seemed, to everyone but the state’s government, a good idea. He gave a discount of 2 cents per gallon to senior citizens and 3 cents for people who support local youth sports programs.
But Wisconsin’s Unfair Sales Act requires retailers to sell gasoline for 9.18 percent above the wholesale price. The state’s marvelously misnamed Department of Agriculture, Trade and Consumer Protection has protected consumers from Bhandari’s discounts by forcing him to raise his prices. Some customers now think he is price gouging.
Some Wisconsin legislators are considering changing the Unfair Sales Act to allow retailers to discount gasoline to benefit things those legislators think should be benefited. In Madison, Wis., as in Washington, D.C., it is considered eccentric to think that government should butt out, let people buy and sell as they please, and let markets equilibrate.