Here is the third part of the list of gas stations in New Jersey that are ripping off customers. For more information, see this first part and the second part.

The first part also contains a map of every gas station fined for violation of a variety of regulations.

This list begins with Morris County. Read the rest of this article »

Here is the second part of the list of gas stations in New Jersey that are ripping off customers. For more information, see this first part. The first part also contains a map of every gas station fined for violation of a variety of regulations.

This list begins with Essex County. Read the rest of this article »

If you buy gasoline in New Jersey, you may want to avoid the gas stations listed in this article. The New Jersey Division of Consumer Affairs has fined 350 stations out of 1,025 total inspected during a recent three-day operation across the entire state. Most of the stations fined were guilty of innacurate pump calibration, providing customers with less gasoline (fewer gallons) than appear on the pump’s display.

Other violations include inaccurate octane ratings, missing registration, prices posted incorrectly and multiple price changes in a 24-hour period.

Here is a map of the stations cited and fined, and you can find out the violations for which each station on the map is guilty by zooming in and clicking on the marker. For a list of all stations in violation, read this full post.

If you believe you see a violation in New Jersey, call the Division of Consumer Affairs at (732) 815-4840.

Continue reading for the full list of gas stations in violation, grouped by county. Read the rest of this article »

Last June, I noticed that a few gas stations in my area were charging different prices for gas depending on whether your method of payment was cash or credit. My biggest problem was that this wasn’t advertised on the large signs attracting drivers to the station. The station later changed its signs, though the cash price appears in the spot where one would normally see the “regular unleaded” price, and the credit price appears where one would expect the “plus unleaded” price. The labels “cash” and “credit” are only legible up close.

This “cash discount” is a joke. The cash price is the competitive price relative to other local stations and the credit price has increased more significantly. This is just a sneaky way of getting around Visa’s and MasterCard’s requirements for merchants not to charge more for customers who use credit cards. I am aware the credit card companies charge transaction fees that can cripple gas station owners who make very thin profits on gasoline, but this is not the answer, particularly if they must run misleading advertising to compete with other stations.

The price discrimination first occurred shortly before I moved to a new town, so I didn’t have to deal with it at that time. Once I moved, I found a local, low-price gas station on my daily route that did not offer a “cash discount.”

Last night, I pulled into my low-cost station on the way home from the office, just like I have been doing several times a week for the past 11 months. As pumping our own gasoline is against the law in New Jersey, I asked the attended to fill up the tank. It wasn’t until the tank was almost full that I glanced at the sign on top of the pump to see how high the prices increased over the weekend. I noticed there were two sets of prices, one for cash and one for credit.

Curses, foiled again. Some time in the past few days the owners of this Raceway gas station decided to offer a “cash discount” as well, just like the Valero station near my old apartment. The large sign attracting drivers to the station had been changed to list cash price first, followed by credit price in the “plus unleaded” location, with small labels reading “cash” and “credit.”

The price difference between cash and credit was ten cents. I’m considering opening up a CitiBank Driver’s Edge credit card, like this one for students, currently offering a 6% cash back rebate on gasoline purchases. That rebate would make up the ten cent difference and more, but I’d rather not open more credit cards.

I’d also rather not carry around cash for fueling my car, considering it cost almost $40 to fill up last night. I would save $2.00 to $3.00 a week by paying with cash. All other gas stations are either more expensive or out of the way. Perhaps I’ll try cash for a while, but I’ll have to get used to withdrawing about $100 more than I usually do each week. If I adapt, I’ll have perhaps an extra $150 saved after one year.

A recent article on CNN Money described the woes of independent gas station owners. The increasing cost of a gallon of gasoline results in less profit thanks to the processing fees credit card companies charge the merchants. I can appreciate that doing business in this type of environment is tough.

With gas prices soaring to a national average of $3.76 Wednesday, according to motorist group AAA, those credit card fees add up to an average of 7.5 cents per gallon – taking away nearly 83% of gas stations’ fuel profits.

Most gas stations earn their bigger profits on items purchased in the attached convenience store and mechanic services. Gasoline is a loss leader. Everyone needs it, and many gas stations are willing to take even a slight loss on gas as long as they continue to make profits elsewhere.

The credit card companies don’t accept the blame. For example, Visa says the processing fee they charge their gas stations is set by the large oil companies.

The Electronic Payment Coalition (EPC), a group representing credit card networks and financial services organizations, said it’s impractical for card companies to negotiate with every single gas retailer. So, it said, gas station owners should put pressure on their parent oil companies to negotiate a better fee.

To compete, some gas stations are charging customers who use a credit card more than a customers who use cash. Apparently, they’ve found a way to avoid breaking the credit card companies’ rules by calling this a “cash discount” rather than a “credit premium.”

I don’t know what the real difference is, and the only effect it’s had on me is switching to another gas station. The main problem is when gas stations advertise their cash price without disclosing (until the nozzle is in your car) that you will be paying more if you use a credit card.

To help solve some of these problems, both for the consumer and the independent gas station owner, Congress is suggesting fixing the maximum rate that credit card companies can charge merchants to accept their cards through a bipartisan bill in the House, called the Credit Card Fair Fee Act. Congress will set up a committee who will define what rates the credit card companies can charge merchants.

Will this solve the problem or is it unnecessary meddling in a free(ish) market economy?

There’s a new kind of gasoline pump being shipped to gas stations, and it’s the kind of thing guys will like. If you need directions, just check the pump. These new devices are equipped with a stripped-down version of Google Maps, pre-loaded with locations hand-picked by the station owner.

Once you find your destination on the device, you can even print out the directions and coupons. As of now, Google will not place advertising on the service, encouraging gas station owners to work with their local restaurants, hotels, and other destinations.

There’s a strong drawback. If you don’t have a destination address, and the place you want to visit is not one of the gas station’s “partners,” the maps will be useless. You’ll have to suck it up and ask for directions from a live human being anyway.

Those of us filling up in New Jersey are not permitted to pump our own gas, so we probably won’t see this technology. In fact, some gas stations around here haven’t upgraded their pumps since what I imagine would be some time in the 1960s or 1970s. This could be helpful when traveling out of state, though.

Gas Stations Getting Pumped for Google Maps [News.com]