News
Repeal of Law On Gas Prices Surprises Some
UPI

05/20/1989
The Omaha World-Herald
Iowa 33
(Copyright 1989 Omaha World-Herald Company)

Pump-price readings that end with nine-tenths of a cent, which some
legislators say deceive gasoline buyers, once again are allowed under a new
Iowa law.

One lawmaker, though, said that the change was sneaked through the
Legislature and that he will work to repeal it next year.

The practice was outlawed four years ago but was reinstated as part of a
bill making wording changes in state law.

Gov. Branstad signed the bill, giving gas station operators the chance to
begin using the nine-tenths pricing May 5.  Many state officials and some
station owners also were unaware of the change.

Sen. Al Sturgeon, D-Sioux City, said the revised pricing is misleading and
he will work to repeal it.

"I think it was snuck in there," Sturgeon said. "Many lawmakers would have
voted against it if they had more time to consider it. Motorists are
concerned. They don't want that type of deceptive pricing. It's more honest
to have a flat price."

Jerry Hanson, who operates a Standard station in Coralville, said he was
surprised to see the little numeral 9 on a competitor's sign recently.

Patricia Garcia, manager at the Coastal Mart station in Coralville, said she
has fielded many questions from motorists.   

Bill Roach, spokesman for the Iowa Attorney General's Office, said he was
unaware of the change until a reporter told him about it.  Jim O'Connor, the
Iowa Agriculture Department's chief of weights and measures, did not know of
the change.

Petroleum marketers say the pricing system is no different from retailers'
use of 99 cents to make a product more appealing. And they say lawmakers
should not have been surprised by the change.

Ed Kistenmacher, managing director of the Petroleum Marketers of Iowa, said
the change was debated and passed by the House as a separate amendment to
another bill. The amendment was never discussed in the Senate, however,
before being added to the code-change bill.

Kistenmacher said the change was sought to make border stations more
competitive.

"If someone in Nebraska is at $1.11 9/10 and the Iowa station is $1.12, a
motorist might think he's saving a whole penny a gallon by going over," he
said.