Chief U.S. District Judge Rudolph Randa finally said last week from a position of authority what many, including this newspaper, have been saying for some time - that Wisconsin's minimum markup law on gasoline is archaic, unconstitutional and must be repealed.
Randa, in his Eastern District federal court, last week ruled that the state must stop enforcing its mandatory markup on the price of a gallon of gas - a law that has been on the books since 1939 and was meant to protect small, mom-and-pop gas stations. The law prohibits retailers from selling products for less than they paid. It also requires gas stations to tack on 6 percent over what they paid, or 9.18 percent over the average wholesale price, whichever is higher. The law does let stations mark up gas less than that to meet competitors' prices.
The result of this ridiculous markup is that it has cost Wisconsin drivers about 30 cents on every gallon during the past two years, Randa estimated. Other experts say the law costs drivers between 1 and 8 cents a gallon.
Whatever the cost, it has been unnecessary. And Judge Randa's ruling was correct, if not overdue. That lawmakers have routinely extended the markup session after session is incredible.
"The state has been on autopilot since this passed," said Jonathan Dibble, attorney for gasoline seller Flying J, which filed the lawsuit against the markup.
Attorney General J.B. Van Hollen is considering whether to appeal the ruling. He shouldn't.
Republican Reps. Bill Kramer of Waukesha and Leah Vukmir of Wauwatosa said they would introduce a bill to repeal the minimum markup law for all products. The markup law applies to prescription drugs, alcohol, cigarettes and other products, but Randa's decision was limited to gasoline sales.
The Legislature should repeal the markup law in all instances. The fate of such a repeal seems unclear with Democrats in control of the Legislature, but Democratic Gov. Jim Doyle supports abolishing the markup.
The difference at the gasoline pump may or may not be significant. But the markup process is wrong, and does not help consumers or most gas stations. It's time for it to go.
Randa, in his Eastern District federal court, last week ruled that the state must stop enforcing its mandatory markup on the price of a gallon of gas - a law that has been on the books since 1939 and was meant to protect small, mom-and-pop gas stations. The law prohibits retailers from selling products for less than they paid. It also requires gas stations to tack on 6 percent over what they paid, or 9.18 percent over the average wholesale price, whichever is higher. The law does let stations mark up gas less than that to meet competitors' prices.
The result of this ridiculous markup is that it has cost Wisconsin drivers about 30 cents on every gallon during the past two years, Randa estimated. Other experts say the law costs drivers between 1 and 8 cents a gallon.
Whatever the cost, it has been unnecessary. And Judge Randa's ruling was correct, if not overdue. That lawmakers have routinely extended the markup session after session is incredible.
"The state has been on autopilot since this passed," said Jonathan Dibble, attorney for gasoline seller Flying J, which filed the lawsuit against the markup.
Attorney General J.B. Van Hollen is considering whether to appeal the ruling. He shouldn't.
Republican Reps. Bill Kramer of Waukesha and Leah Vukmir of Wauwatosa said they would introduce a bill to repeal the minimum markup law for all products. The markup law applies to prescription drugs, alcohol, cigarettes and other products, but Randa's decision was limited to gasoline sales.
The Legislature should repeal the markup law in all instances. The fate of such a repeal seems unclear with Democrats in control of the Legislature, but Democratic Gov. Jim Doyle supports abolishing the markup.
The difference at the gasoline pump may or may not be significant. But the markup process is wrong, and does not help consumers or most gas stations. It's time for it to go.
