Big Oil isn't at the top of anyone's favorites list these days, but that shouldn't give the Legislature license to interfere in legitimate business arrangements between the major gasoline brands and their franchisees. Yet there's a bill now being seriously considered on Beacon Hill that would allow the owners of local gas stations to break the contracts they signed with companies like Shell, Sunoco and Exxon-Mobil.
Franchise owners say those agreements prevent them from following the lead of independent gasoline retailers in offering discounts to those who pay cash when they fill up at the pump. And they've found a sympathetic ear on Beacon Hill.
The big oil companies may have various reasons for requiring that those who use credit cards be treated the same as those who pay cash — one of which is that most offer cards of their own. In any case, franchisees agreed to those terms when they accepted the brand, and the Legislature should not make a practice of encouraging businesses to break legally-binding contracts.
However, a bill supported by Sen. Bruce Tarr, R-Gloucester, and Reps. Brad Hill, R-Ipswich, and Barbara L'Italien, D-Andover, among others, would do just that.
State Sen. Steven Baddour, D-Methuen, supports the bill. He told reporter Edward Mason the Legislature shouldn't care what oil companies think.
"The only groups I can imagine would be opposed are the Exxon-Mobils of the world," Baddour said. "And I don't really care about their view right now."
That tough talk from Baddour comes easily when the target is one of the public's favorite bogey-men. But there should be others outside of Big Oil who oppose such a scheme — namely, those who believe in the sanctity of private contracts, one of the founding principles of our nation. Article I, Section 10 of the Constitution bars states from enacting any law "impairing the obligations of contracts." It's difficult to conceive of a more direct impairment than a law that throws out a contract clause freely agreed to by oil companies and their dealers.
We understand lawmakers are sensitive to the effect high gas prices are having on the ability of Massachusetts families to make ends meet. But there's a legitimate way they could address those concerns if they're so inclined — lower the gas tax.
Of course the Republicans tried that earlier this year — offering a proposal to suspend the 21-cents-per-gallon gas tax for the summer — and it was summarily rejected by the Democratic majority.
