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WPCNR WESTCHESTER COUNTY CLARION-LEDGER. From Westchester County Department of Communications. February 15, 2007: Citing an analysis of

Price Roulette. Photo, WPCNR News Archive
Zone pricing occurs when oil companies charge higher wholesale prices to gas station owners in certain geographic areas. The higher wholesale prices are then passed along to consumers. The
“Zone pricing is a manipulation of the market and causes consumers in some areas of the county to pay significantly higher prices for gasoline than their neighbors in other areas of the county,” said Spano. “There is no good reason for this, and I urge the state Legislature to ban zone pricing by passing Assemblyman Richard Brodsky’s bill.”
The county Department of Consumer Protection analyzed gasoline prices in
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· Katonah: 14.96 cents per gallon above the county average for 5 years; 16.2 cents per gallon more in 2006
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· Croton: 4.32 cents per gallon above the county average for 5 years; 6.7 cents per gallon more in 2006.
· Somers: 3.78 cents per gallon above the county average for 5 years; 6.0 cents per gallon more in 2006
Zone pricing was especially pronounced last year, when gas prices rose to all-time highs during the
summer before dropping late in the year. The analysis also showed that zone pricing occurs consistently on a month-to-month basis. “The numbers speak for themselves,” said Gary Brown, director of Consumer Protection. “Zone pricing causes consumers in the six affected communities to pay consistently higher prices for gas.”
County Legislator Michael B. Kaplowitz, chairman of the Board of Legislators’ Budget & Appropriations Committee, joined Spano in seeking relief at the gas pump for Westchester consumers. In 2005, Kaplowitz, a long-time advocate of a ban on zone pricing, authored a resolution passed by the
“Zone pricing distorts the free market because gasoline dealers almost always have franchise agreements stipulating that the dealers must purchase products from a single supplier,” said Kaplowitz. “Under these agreements, gas dealers cannot shop for a cheaper supply. Then the wholesale price they are forced to pay is fixed by the oil companies, using factors that are beyond the laws of economics, but determined by simply how wealthy a community is or immobile a community is. This practice is crippling small and independent dealers and, by extension, the consumer.”
CHART SHOWING ZONE PRICING
2002 | 2003 | 2004 | 2005 | 2006 | Average price diff. | |
County-wide | $1.569 | $1.823 | $2.113 | $2.576 | $2.889 | ———– |
$1.681 (+11.2¢) | $1.961 (+13.8¢) | $2.289 (+17.6¢) | $2.712 (+13.6¢) | $3.091 (+20.2¢) | +15.28¢ | |
Croton | $1.604 (+3.5¢) | $1.882 (+5.9¢) | $2.129 (+1.6¢) | $2.615 (+3.9¢) | $2.956 (+6.7¢) | +4.32¢ |
Katonah | $1.695 (+12.6¢) | $1.992 (+16.9¢) | $2.258 (+14.5¢) | $2.722 (+14.6¢) | $3.051 (+16.2¢) | +14.96¢ |
$1.604 (+3.5¢) | $1.854 (+3.1¢) | $2.189 (+7.6¢) | $2.636 (+6.0¢) | $2.970 (+8.1¢) | +5.66¢ | |
$1.614 (+4.5¢) | $1.883 (+6.0¢) | $2.195 (+8.2¢) | $2.672 (+9.6¢) | $3.035 (+14.6¢) | +8.58¢ | |
Somers | $1.592 (+2.3¢) | $1.866 (+4.3¢) | $2.144 (+3.1¢) | $2.608 (+3.2¢) | $2.949 (+6.0¢) | +3.78¢ |









