Sheetz Again Selling Gas Below Cost
The big gas/c-store chain Sheetz, based in western Pennsylvania, is again running a promotion in which they deeply discount their gas, this time selling for $1.99 a gallon--which means they're losing about a dollar per gallon even before expenses are added in. They ran a similar promotion over July 4th this year as well. Can you imagine having to compete against that? Thankfully, imagine is all you have to do, since selling gasoline below cost is illegal in the state of New Jersey. Those celebrating Sheetz’s seemingly ‘feel-good’ and ‘generous’ promotion may not realize that it’s a predatory act. A giant corporation with nearly 700 locations in six states can afford to sell gas below cost, knowing full well that small businesses can’t match it. Once competitors have been eliminated, the company is free to charge as much as they want and use the extra earnings to subsidize losses at new locations. NJGCA was founded as the NJ Gasoline Retailers Association in 1937, and the ban on below cost selling was enacted in 1938. Make no mistake, without NJGCA in existence, and with the amount of strength we have, that law would be gutted or repealed like it is in most states. A few years ago one major company even fought a costly lawsuit to kill the law but lost in court, NJGCA had filed an amicus (friend of the court) brief and we were successful in keeping it on the books. If you suspect a competitor is breaking this law, please email Nick@njgca.org and assist the State in getting the law enforced.
We have also been looking into new initiatives to strengthen and expand this law. Do you have any ideas or suggestions? Please email Eric@njgca.org
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