The Assembly Committee on Economic Development has approved legislation sponsored by State Assemblyman Fred W. Thiele, Jr., (I, D, WF-Sag Harbor) which strengthens New York State’s Gasoline Zone Pricing Law originally enacted in 2008. "Zone pricing" means the establishment of price differences based on the geographical location of the retail outlet within the relevant geographic market, without regard to the posted terminal price and any additional costs where the effect is to injure competition.

Thiele stated, “This legislation would end the unfair practice of ‘Big Oil’ companies establishing arbitrary prices for gasoline based upon geographical location without regard to cost. Historically, big oil companies have charged higher prices on the South Fork as well as other areas such as Westchester County without regard to cost. The law passed in 2008 was a first step to reduce the differential in gas prices based on geography. However, the State Attorney General’s Office has requested amendments to permit him to more vigorously enforce the law.

Thiele’s bill, at the request of the State Attorney General, clearly defines the “relevant geographic market” and “zone pricing”. It also makes clear that the law applies to sales from wholesalers or dealers to dealer operated outlets. Some oil companies had argued that the law did not apply to them because they were dealers not wholesalers. Further, in addition enforcement by the State Attorney General, any wholesaler or dealer injured by zone pricing would also be authorized to bring an action for an injunction against the supplier engaged in illegal zone pricing.

Thiele stated, “It is imperative that we have available every tool necessary to insure fairness in the gasoline marketplace. This legislation will insure that no region of the state is paying unfair, higher gasoline prices based solely on geography.”

Thiele hopes for a vote on the legislation in the full Assembly by the end of June. The Assembly passed the bill in 2012, but it failed to pass the Senate. The bill is now sponsored in the Senate by State Senator Ken LaValle.