Popular new station under fire for 'predatory prices' on gasoline

Victoria Eldridge likes the new gas station in her neighborhood and she likes the prices even better.

But, other gas stations in the area are not happy, and the director of the New England Service Station and Repair Association Inc. says the owners of Prestige Gas and Mini Mart on Warren Avenue are breaking the law with lower-than-wholesale prices.

"If I can get it, I'll take it," Eldridge said Monday as she filled up for $2.89 a gallon, 10 cents a gallon less than other stations in the area.

Bob Day drives across the city to get gas at Prestige, even though he has to wait in line, and last week he had to fight to keep his place in line.

In the week since the gas station opened in a renovated repair garage, Prestige has become a popular destination for customers from throughout the city.

Day said it's not just the low gas prices.

"It's a new store, and they treat you like a gentleman," he said.

From behind the cash register in the mini mart, clerk Nuno Nunes of Brockton pointed to the line of cars, consistently four deep, waiting for gas Monday.

"Our goal is to keep gas at wholesale prices," owner Ronen Drory said.

Inside, the convenience store items are also more affordable than in many similar shops, he added.

The family-owned company owns a car wash in Taunton that also offers low prices and is about to open a second car wash on Brockton's West Side.

The Drorys say the low prices are intended to help the people of Brockton.

But, Paul O'Connell, executive director of the New England Service Station & Automotive Repair Association Inc., says Prestige's "predatory prices" are hurting the consumer and other businesses.

The association represents about 20 percent of the service stations in Massachusetts.

O'Connell cited a state law that says in part, "No retail dealer shall, with intent to injure competitors or destroy substantially or lessen competition, advertise, offer to sell or sell at retail motor fuel at less than cost to such retailer."

As of Jan. 3, O'Connell said gas was about $3 a gallon, wholesale. Drory, the station owner, said it was $2.95 a gallon wholesale on Monday.

Drory said he was unaware of the law, but believes it is unfair and hopes he won't be forced into raising prices.

"It's a monopoly," Drory said, adding that a nearby station owner approached him before the shop opened and asked him about setting prices. The station owner was not available for comment Monday.

O'Connell said it may be a marketing strategy for the new station, but Prestige's pricing is disrupting the market.

"Highs and lows across the state are, for the most part, within a nickel," he said.

Further, O'Connell said, it is not economical for motorists to drive long distances to save a few cents on a gallon of gas.

It is not unusual for gas stations to sell gas at less than wholesale costs, but neither O'Connell nor a spokesman for the Plymouth County District Attorney's Office was aware of anyone being prosecuted for setting the price of gas below wholesale.

"Brockton's always a hot spot," O'Connell said.

Elaine Allegrini can be reached at eallegrini@enterprisenews.com.

The Enterprise