By Rachael Wilson
wilson@newsroom.byu.edu
BYU students share at least one common concern with state oil distributors and the attorney general candidates: gas prices.
On morning of Sept. 12 Mark Shurtleff and Reed Richards greeted an eager audience of petroleum marketers and retailers to discuss the Utah State Motor Fuel Marketing Act.
'The act as it currently stands is unenforceable,' said Shurtleff, Salt Lake County Commissioner and Republican candidate for attorney general.
The Motor Fuel Marketing Act was established to protect both consumers and marketers from price monopolies.
This 1987 act prohibits selling fuel at a price lower than its competitors if the intent is to injure competition: to prevent the abuse of monopoly power.
John Hill, Executive Director of the Utah Petroleum Marketers and Retailers Association, said the act is imperfect.
Hill proposed two changes for the act to the attorney general candidates.
'The first change should be to change the definition of cost. The market must be able to compete at cost. The second change is that there should be a 72-hour grand opening provision,' Hill said.
The 72-hour grand opening provision would allow new gasoline distributors to draw customers with lower prices for the first 72-hours of business. After that, they would be required to resume market prices.
Shurtleff said that although he believes the government ought to have a hands-off mentality in the marketplace, 'the government should be involved to protect competition.'
Richards agreed.
'The most concerns and public complaints as of late have had to do with high gas prices,' Richards said.
Richards said he is taking active steps in resolving those concerns.
While residents are eager to cut gasoline prices, local distributors and marketers are constrained.
'You can't sell below costs. People have to make a profit,' said one local gasoline distributor, who refused to disclose his name.
The distributor said he is confident that once the amendments have been made the Motor Fuel Act will protect that right.
Jerry Tedrow, the Executive Director of the Western Petroleum Retailers, said he is proud of the marketers and retailers and how they have dealt with the gasoline price issue.
Distributors have generally received criticism for the current high gasoline prices.
'They've been through the trenches,' Tedrow said.
Richards said other issues still need to be addressed.
'The biggest challenge for the industry is entities that are not in the gasoline industry selling gasoline at reduced prices,' Richards said.
An example of this would be Costco, a wholesaler who attracts customers through discounted goods, including gasoline.