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HB 3583

MOTOR FUEL-MINIMUM MARKUP

104th Regular Session Introduced by Kevin Olickal

Illinois bill requires gas stations to maintain minimum profit margins on fuel sales to protect independent retailers from undercutting by larger competitors.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 3583

Legislative bill overview

HB 3583 establishes minimum markup requirements for motor fuel sales in Illinois, requiring retailers to maintain a specified profit margin above their wholesale cost. The bill aims to protect independent gas station operators from being undercut by larger competitors who can absorb lower margins.

Why is this important

Gas station economics significantly affect rural and urban fuel access, as independent operators often struggle against large chains with economies of scale. Such markup floors could influence fuel prices consumers pay and determine whether independent retailers can remain viable in their markets.

Potential points of contention

  • Consumer impact: Minimum markup requirements could increase fuel prices for consumers by preventing retailers from competing on price, particularly affecting lower-income households dependent on gasoline
  • Market competition concerns: Price floors may reduce the competitive pressure that typically drives down consumer costs and could benefit larger chains by eliminating smaller competitors' ability to undercut through volume strategies
  • Enforcement complexity: Determining fair wholesale costs and monitoring compliance across hundreds of retailers presents administrative and verification challenges, potentially requiring new regulatory infrastructure

Compiled from official sources — confirm details with the bill’s official record.

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