Business in the Burbs

Soano wants state probe of gas prices

March

Westchester County Executive Andy Spano has asked state Attorney General Andrew Cuomo to investigate what he calls the “unlawful and discriminatory practice of zone pricing” when it comes to gasoline.

Zone pricing is the practice of oil companies charging higher wholesale prices to stations in certain geographic areas. The practice is generally based on local markets. Prices are higher in more affuent markets and lower in poorer communities.

Spano said in a letter to Cuomo that companies continue to engage in zone pricing in the county, despite a state law that was supposed to ban it. He pointed to surveys by the county’s Department of Consumer Protection that show gas prices in communities like Bedford, Croton-on-Hudson, Katonah, Rye and Somers are up to 30 cents a gallon higher than the average.

This entry was posted on Thursday, March 19th, 2009 at 8:22 am by Allan Drury.
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