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Brand-less could save at pump: Bill would force oil firms to allow station owners to sell unbranded gas(Times Union (Albany, NY) Via Acquire Media NewsEdge) Sep. 20--ALBANY -- Gas station owners have been posting fliers at their pumps supporting a bill before Gov. David Paterson that they say could lower gasoline prices by up to 20 cents per gallon. The bill, sent to Paterson's desk on Monday, would force oil companies such as ExxonMobil, Hess and Sunoco to allow their station owners to also sell "unbranded" gasoline they often can buy at a significant discount. Major oil companies like ExxonMobil make their station owners sell only their own branded gas. As of Friday, regular gasoline averaged $3.73 a gallon in the Capital Region, which is down 10 cents from a month ago. The legislation, known as the open supply bill, would "null and void" any contract provisions that prohibit a station from selling unbranded gas as long as they own their own tanks and pumps. Previous versions of the bill have circulated in the Legislature before, but with gas prices at historic highs, it received enormous support this time around. "We think it's a great idea," said Ralph Bombardiere, executive director of the New York State Association of Service Stations and Repair Shops. "There's no competition at the wholesale level. This would level the playing field to some degree." Bombardiere said unbranded gas can sell for as much as 20 cents less per gallon than branded gasoline. Under the bill, station owners would have to clearly price and label unbranded gas. No other state in the country allows the practice. However, there are independent gas stations all over the United States, including in the Capital Region, that use only unbranded gas. Paterson is not saying whether he supports the bill. Spokeswoman Erin Duggan said the governor's legal counsel is reviewing the legislation. ExxonMobil spokeswoman Betsy Eaton said the company has not taken a position on the bill. She referred questions about it to the New York State Petroleum Council, a trade group. Michael Doyle, executive director of the council, said his group opposes the bill, saying it doesn't allow the oil companies to control their own gasoline. He said it's impossible to know if branded and unbranded gas is getting commingled as tanks are emptied and refilled with the different types. He said the oil companies spend too much on their brands and image and invest too much in station owners to allow that to happen. Christian King, who owns Mobil stations around the region, says he hasn't supported the bill in the past, but now he has agreed to give it his support. He says if it gets signed by the governor, he won't offer unbranded gas right away. He expects that the move would force ExxonMobil to lower its prices to him instead. "Ultimately it will be a benefit to the consumer," he said. Rulison can be reached at 454-5504 or by e-mail at [email protected]. To see more of the Albany Times Union, or to subscribe to the newspaper, go to http://www.timesunion.com. Copyright (c) 2008, Albany Times Union, N.Y. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |