WPCNR Gasoline Alley. May 3, 2006: Though the Westchester County Department of Consumer Affairs continues to monitor gasoline prices in Westchester for price gouging, consisting of charging beyond increases in the wholesale price,  according to the County Department of Communications, Communications reports found any evidence of gouging yet.

The Department of Communications also told WPCNR Tuesday the county has no control over repealing or reducing the gasoline sales tax, that only the state legislature has the authorty to lower the county sales tax on gasoline. County communications also noted that lowering sales tax might hurt communities dependent upon that income. White Plains, for example, is enjoying the gasoline price runup because it augments their sales tax coffers which can use every penny.

Legislator Michael Kaplowitz issued a statement today that New York should apply brakes on gas prices by eliminating different pricing by location for the same gasoline.  Here is Mr. Kaplowitz's edited statement:

Since 2003,  Westchester County Legislator Michael B. Kaplowitz (D-I-WF, Somers), has strongly advocated for a state ban on a practice known as “Zone Pricing” – when big oil companies charge different wholesale prices to retail stations for the same gasoline based on location.  “It’s not about the cost of the commodity itself and it should be.  Instead, it’s a gross manipulation of the marketplace by big oil and it needs to be outlawed,” he said in an official news release today. 

“Zone Pricing distorts the free market because gasoline dealers almost always have franchise agreements stipulating that the dealers must purchase products from a single supplier,” said Kaplowitz, chair of the County Legislature’s Budget & Appropriations Committee.  “Under these agreements, gasoline dealers cannot shop for a cheaper supply of gasoline.  Then the wholesale price they are forced to pay is fixed by the oil companies, using factors that are beyond the laws of economics, but by simply how wealthy a community is or immobile a community is.” 

In May of 2005, Kaplowitz, who now chairs the Legislature’s Committee on Budget & Appropriations, lead the Legislature in a unanimous vote passing a Resolution in support of proposed state bills (A.3856/S.973) that would, if passed, would prohibit the practice of zone pricing and marketing in New York State.  “There has been no movement on these bills, in either House, since February and soon they will be out of session for the summer,” Kaplowitz noted. 

             “I’m urging Westchester’s State Delegation to make these bills a priority and pass them as quickly as possible, so our County’s residents can start to get some real relief at the gas pump,” he said.                                                  

Kaplowitz, in his news release claims that in 2003, he made the commitment to fight for his constituents, and take on the big oil companies. “This practice is a vertical monopoly and its crippling small and independent dealers and, by extension, the consumer,” he said.  “I’ve been at this for three years, I’m not about to give up now."

Kaplowitz credited Elaine Price, the County’s Director of Consumer Affairs, for her hard work and consistent dedication on this issue.