The Los Angeles City Council’s Intergovernmental Relations Committee will consider a motion by Councilmember Nate Holden to OPPOSE State Senate Bill 123 (Peace, San Diego), a bill that proposes service station dealers should be able to "shop around" for the best price of gasoline that they sell to consumers. Currently, most dealers must pay a set price for their gasoline supplies. This bill will most certainly increase competition in the wholesale pricing of gasoline in California.

Independent Service Station Dealers are outraged over this attempt by "big lobby" oil companies to maintain their stranglehold on gas prices in Los Angeles. If the City of Los Angeles goes on record as opposing SB123, consumers’ chances of seeing lower gas prices will 'disappear out the tailpipe'.

The oil companies argue that this bill will increase gas prices in LA. "This is not rocket science. Any first-year economics student knows that increasing competition will almost certainly REDUCE prices, not raise them!" says Will Woods, Executive Director of the states largest non-profit trade association of independent gasoline retailers. "Allowing dealers to shop pricing for gasoline among competing sources is good for consumers and will most certainly improve the market here in LA"

Woods urges "all Los Angeles consumers to contact their City Council member and urge them to SUPPORT Senate Bill 123! It’s time that drivers pay reasonable, competitive prices for gasoline."

Should you have questions regarding this correspondence or other materials you receive related to the oil industry, please don't hesitate to contact Will L. Woods, CAE, Executive Director, at the AuTO-CA office, 714.734.1801.