New York Assembly Bill A05631

New York 2025-2026 Regular Session

• Introduced: 2/18/25
• Refer: 2/18/25
• Refer: 1/7/26

Caption

Nullifies agreements which prohibits a dealer, who either directly or through an affiliate owns a service station including the tanks and pumps or where a dealer provides environmental pollution insurance coverage for the tanks and pumps of not less than one million dollars in the aggregate and who dedicates a tank for sale of unbranded motor fuel, or any provision of a franchise with a refiner which prohibits a distributor from purchasing or selling unbranded motor fuel from a person or firm other than the refiner or limits the quantity of such unbranded motor fuel to be purchased from another person or firm or any provision of a franchise which directly or indirectly discourages a dealer or distributor from purchasing or selling such unbranded motor fuels from another person or firm.

Summary

Bill A05631 amends the general business law to allow gas station dealers to purchase motor fuel from alternative suppliers, specifically unbranded motor fuel. It nullifies any franchise agreements that prohibit such purchases or limit the quantity that can be obtained from non-refiner sources. This change aims to enhance competition in the motor fuel market by enabling dealers to source fuel from a wider range of suppliers, thereby potentially lowering costs for consumers.

Impact

The bill's passage would significantly alter the landscape of fuel distribution in New York by removing restrictions on gas station dealers and distributors regarding the purchase of unbranded motor fuel. This could lead to increased competition among fuel suppliers and potentially lower prices for consumers. Additionally, it may affect existing franchise agreements between dealers and refiners, as those provisions would be rendered null and void if they restrict purchasing options.

Sentiment

The general sentiment around Bill A05631 appears to be positive among proponents who argue that it will foster competition and benefit consumers. However, there may be concerns from refiners and established distributors who could be negatively impacted by increased competition and the potential loss of control over fuel distribution.

Contention

Notable points of contention include the potential pushback from refiners and distributors who may argue that the bill undermines their business models and could lead to market instability. Proponents of the bill, including some gas station owners, argue that it is necessary for fair competition and consumer choice.