Why are there two prices for gas here?
| Tuesday, Nov 23 2010 02:21 PM
Last Updated Tuesday, Nov 23 2010 02:21 PM
Q: Recently we were on a trip to Santa Barbara and then Morro Bay. In both places we purchased gas and noticed that the price signs at the gas stations had one price -- cash and credit, both the same. Is Kern County unique in that they show a cash price and a higher price for credit? Is this a county tax grab? Or what?
-- Don Enebo
A: An online search shows this is not unique to Kern County, that people all over the country are sometimes charged different prices for use of cash versus credit. For some background, here's an old Ask The Californian we've published:
Question: Is it against the law to charge 10 cents more for a gallon of gas if the consumer uses a credit card?
Answer: It's tricky, said Manuel Villicana, deputy director of the Kern County Department of Agriculture and Measurement Standards.
Retailers can't impose a surcharge on someone who elects to use a credit card in lieu of cash payment but they can offer a discount to people who pay by cash, check or other non-credit card means, he said, quoting state code.
And that's how retailers get away with offering a lower price for cash purchases, Villicana said.
