b"WPMA Member News FACTORS IMPACTING PRICES AT THE PUMP What do we pay for per gallon of retail regular grade gasoline?7.Distribution and Marketing:Major integrated oilFederal Gas Tax Holidaycompanies have removed themselves from the retailEMA opposes a proposed federal gas tax holiday because gasoline business. Of the 150,000 U.S. retail gasolineit would lead to a logistical accounting nightmare. Should locations, 98 percent are owned by independent motora gas tax holiday be enacted, retailers must recoup the 18.4 fuel marketing businesses. While those small businessescpg tax paid on the amount of gasoline remaining in their may sell a particular brand of gasoline, they do not shareunderground tanks (floor stocks) at the time of enactment. in any of the profits (or losses) generated by refiners andHowever, the time involved for the IRS to establish a claims oil companies. Gas prices are set by the owner or opera- procedure and then process and pay credit or refund claims tor of each retail outlet who must factor the need to paycould take a year or more. Small business retailers lack for the next delivery of gasoline (i.e. replacement costs)the capital to float hundreds of thousands in gasoline taxes into the street price. If supply is seen as dropping rela- owed to them for this length of time. A gas tax holiday tive to demand, this can place upward pressure on pricewould also create an increased risk of liability for underre-and can be factored into the retailers pricing decision.porting or overreporting claims given the difficulty of retail-Because gasoline retailers operate in such a competitiveers measuring gasoline inventory simultaneously across environment, the higher prices climb, the further marginsmultiple sites while consumers operate pumps. It would also are squeezed. Gas station retailers are also hurt by highraise unrealistic expectations among consumers of signifi-fuel prices. cant price reductions at the pump. If consumer expectations are not met, retailers who have little control over cost, could Lack of Evidence be accused of price gouging and unfairly exposed to oner-According to the Federal Trade Commission (FTC) in itsous civil and criminal penalties.Spring 2006 report, Investigation of Gasoline Price Ma-nipulation and Post-Katrina Gasoline Price Increases, 99The Askretailers were sent investigative orders for violating theWhat the President must do is issue quarterly lease sales for FTCs definition of price gouging. Of those who had notonshore energy development and a new five-year plan for already settled state charges, only 24 individual retailersoffshore development; renew Keystone XL; and provide were further investigated by the FTC. Of those 24, only sixfor a general waiver of the Jones Act among other actions were found to have had price increases that could not beto strengthen domestic energy production. Furthermore, substantially attributed to increased costs or national marketRussias invasion of Ukraine, and corresponding oil prices, trends. In any industry with 150,000 retail locations, a 99.9reinforces the value of Americas traditional fuel sources. percent compliance rate for the industry as a whole showsWhile the Administration prioritizes EV charging, we must that state laws are working and that further federal legisla- not forget the millions of Americans who rely on mom-and-tion is not needed. pop gas stations to fuel vehicles daily. _______________________________________ EMA Staff Contact: Rob Underwood, firstname.lastname@example.org; Sherri Stone, email@example.com Don't Miss 2022 Fall EMA Meeting!September 30October 1Followed byNACS/PEI October 1 - 4 at the Las Vegas Convention Center Sin Las Vegas, NV WPMA News / Summer 202239"