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How would repealing the minimum markup law impact gas prices?

Eau Claire (WQOW)- Governor Tony Evers is seeking a gas tax increase to generate more money for road repairs.

Gov. Evers also wants to balance that out by eliminating the minimum markup law, which requires gas stations to charge at least nine percent more than what they pay for gas.

The minimum markup law protects small businesses, because without it big chains could sell their gas at cost or even below cost and drive out smaller competitors who could not afford to do that.

UW-Eau Claire Economics Professor Thomas Kemp said if the minimum markup law is removed, gas prices would fall, but then the gas tax would bring the price back up, so it would essentially even out.

“Gas prices are going to affect their budget in a meaningful way,” Kemp said. “Anything that can be done to maintain the state’s financial position while minimizing the impact on Wisconsin households, I think is a step in the right direction.”

Kemp said with a Democratic governor and a Republican legislature, he’s not sure if Evers’ plan will ever become law.

Kevin Millard

Kevin Millard-Social Media Digital Content Manager for WXOW.

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