June 20, 2008

GREETINGS AND SAL-UTATIONS!

Dear NJGCA Member:

MAKING IT CRYSTAL CLEAR: CASH/CREDIT PRICING

We all know how difficult it has been to keep everything straight in light of constant bombardment by Trenton, the media, the public.  And who can blame you?

From proposals to turn your convenience store into bottle collection center to allowing below-cost selling, our members are getting hammered on all sides.

Now another legislator has introduced a real dumb piece of legislation.  Legislation that would prohibit you from raising your price until you receive another delivery with a higher invoice cost has just been introduced.  Get your boxing gloves on!

Discussions with one legislator meant to discourage him from introducing yet one more piece of cash/credit legislation ended with the legislator stating, ”I have to introduce SOMETHING to show my constituents that I am doing something about high gas prices”.

Legislators don’t even care if the legislation they are proposing will actually accomplish anything.  They only care about displaying action to voters to save their own asses. Legislators are scared and desperate to respond to voters because of the budget mess in Trenton and high gas prices.

Today Attorney General Anne Milgram, flanked by officials from Weights and Measures and Consumer Affairs, held a press conference announcing the results of a Statewide Task Force that conducted inspections at 1000 gas stations during the month of May.  Unfortunately they cited 350 gas stations with violations ranging from improper signs to octane cheaters.

Here’s the headline in the Star Ledger an hour after the press conference; State cites 350 gas stations for ripping off drivers.  Milgram said she believes most of the violations were intentional, and said she had little tolerance for accidental violations because gas station operators are responsible for knowing and following the law.

Headlines like this make it very hard for the public not to think we are all crooks.  The only way to avoid these headlines is to comply with the law.

YOU are an easy target!

I will continually defend you from undeserved scrutiny, but state officials and the public are now actively trying to catch you doing something dishonest. This is especially true with regards to Cash/Credit Pricing.

Many of you continue to have questions as to how to implement cash/credit pricing properly.

To avoid any confusion, we are going to restate the proper procedure for Cash/Credit Pricing.

Here is what you need to do:

If you implement Cash/Credit Pricing, current regulations dictate that the signs above your gas pumps must display both the cash and the credit price, with the cash price displayed above the credit price. 

The law requires that street signs (if you have one), must be identical to the signs posted on top of the pumps.  That means you cannot display a lower price at the street than you display on top of the pump.

Some retailers continue to display the cash price only at the street, while properly displaying the cash and credit price on top of the pumps. This has caused confusion among motorists and has resulted in mountains of complaints to officials.

To avoid this confusion – and further accusations from the press and the public - both cash and credit prices MUST appear on street signs.  Since most street signs have room for three products, retailers may convert present signs to display ONE product only.  

Signs must be labeled on top with the words “REGULAR UNLEADED” in CAPITAL letters.  Letters must ALL be half the size of the numbers. The two top spaces must indicate the cash and credit price. The third space MUST remain empty.

If a retailer sells diesel and chooses to use cash/credit pricing then the requirement remains the same that both the cash and credit price be displayed. The empty third space on the street sign may then be used as one of the required spaces for the diesel cash price. Another space would still need to be added for the diesel credit price.  

DO NOT POST THE CASH PRICE ONLY ON THE STREET SIGN.  If you want to post one price only then it must be the higher (credit) price.

NJGCA has met with officials from the Department of Weights & Measures to clarify these regulations.  But make no mistake; Weights & Measures will cite you for not following these instructions.

What kind of penalties can you expect to face?  Fines were increased in December for improper signage, with first offense charges now totaling $1500.  A second offense carries a fine of $3000 and your motor fuel license will be revoked.

As the price of gasoline rises, the media, government officials, and the public are looking to catch you doing something dishonest.  Don’t give them the opportunity!  Make sure you are completely in compliance to avoid state imposed penalties and criticism from your patrons.

If you have ANY questions or concerns, please do not hesitate to call me.  Or visit the NJGCA homepage for more information.

Thanks for reading.  See you next week!

Regards,
Sal Risalvato
Executive Director

IN THIS WEEK’S NJGCA ROAD WARRIOR:

WEBSITE UPDATE: MEMBERS ONLY COMING SOON!

•Can you assist us in collecting important information?

NEWS AROUND THE STATE

•Unemployment rate rises – again!
•State Budget clears Assembly Panel
•Two NJ Congressmen seek to end Oil Speculation
•Public Officials Stealing Gasoline?

WEBSITE UPDATE: MEMBERS ONLY COMING SOON!

NJGCA and our software development partners have been hard at work updating the NJGCA homepage.  We are not quite ready to unveil the new changes, but our Members Only Section is nearly complete.

When finished, we will be looking for volunteers to help get critical information to our members.  We need station owners who will commit to signing onto the website and post their daily gasoline delivery price.  We need volunteer dealers of every brand and from every geographic region of New Jersey.

These volunteers will be given a special password so they can enter their current prices.  Only your brand and broad geographic region will be displayed EG: EXXON Northwest; GULF Southeast.

Our goal is to allow MEMBERS ONLY to have the ability to compare their price with the price of other brands in all regions of the state.  This is a tool that can be a very useful guide.

This is all part of a wider attempt to thwart Zone Pricing and keep our suppliers honest.

If you will help, please contact Phil Apruzzi at phil@njgca.org or call NJGCA at 973-376-0066.

NEWS AROUND THE STATE

6/19/2008:
Unemployment rate rises – again!
New Jersey’s unemployment rate rose to 5.4% in May - slightly behind the national average of 5.5% - while employment remains stagnant.

6/19/2008:
State Budget clears Assembly Panel
The Assembly Budget Committee has approved a $32.9 billion state budget for next year; roughly $600 million less than last year’s budget.  While only the first step in gaining approval from the Legislature, the bill is expected to be passed by both houses.

6/19/2008:
Two NJ Congressmen seek to end Oil Speculation
Recognizing the impact speculators are having on oil markets, two NJ Congressman have recently introduced new legislation which would require oil speculators to receive the oil they purchase rather than continually bid up prices.

6/12/2008:
Public Officials Stealing Gasoline?
Twelve government employees and one private citizen are charged with stealing gasoline from government fueling stations.  The thefts ranged from twenty dollars to a few hundred dollars per individual.