Big Oil Gas Stations Sue Rival Station for Selling Fuel Too Cheap, Backlash Ensues

Even though somehow stable, the average price of gas across the U.S. sits at $4,24, according to the AAA. Since this is an average, there are people in some parts of the country that pay significantly more, and some that pay less. Talking about Wisconsin, the average price people pay here for Regular is $3,94, but this is still high for a lot of them.

This is the context a gas station managed by Woodman's Market in Waukesha, Wisconsin, was recently sued by two competitor stations because wait for it, it sells the fuels too cheap. The owners of Shell and BP stations that filed suit against Woodman’s claim that the station is breaking the law by selling gas for less than the station itself paid for it. This is apparently illegal in Wisconsin.

The rivaling stations are suing Woodman’s for damages totaling $80,000 each, based on the number of days they claim that smaller station illegally undercut them. On the other hand, Woodman’s defends itself, saying it has not breached the Unfair Sales Act. They in fact compete with a nearby Costco station and that’s why they had to lower the prices. Costco usually prices its fuels lower because its profits come mainly from membership fees.

This should also be the case with Woodman’s, since the cheaper gas attracts customers in its store, and the profits made there balance the lower gas price. We’re not legal experts here, but judging by the comments to the video below, this trial should end with a landslide victory for Woodman’s. Just ask the jury if they want to pay more for gas. Not only that, but the suing stations would run out of business before even the trial begins, in October, considering the backlash that this caused.