Gas station owner told to raise prices

[LSK]

Wed May 9, 6:05 AM ET

MERRILL, Wis. - A service station that offered discounted gas to senior citizens and people supporting youth sports has been ordered by the state to raise its prices.
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Center City BP owner Raj Bhandari has been offering senior citizens a 2 cent per gallon price break and discount cards that let sports boosters pay 3 cents less per gallon.

But the state
Department of Agriculture, Trade and Consumer Protection says those deals violate Wisconsin's Unfair Sales Act, which requires stations to sell gas for about 9.2 percent more than the wholesale price.

Bhandari said he received a letter from the state auditor last month saying the state would sue him if he did not raise his prices. The state could penalize him for each discounted gallon he sold, with the fine determined by a judge.

http://news.yahoo.com/s/ap/20070509/ap_on_fe_st/odd_cheap_gas

[hlthe2b]

1. Safeway and Kings Soopers Grocery Stores in Colorado

lost a court challenge to offer discounted gas to their customers. The CO legislature had to pass a law to allow it, which fortunately, they did.

How can anyone justify this?