Bill Text: IL HB3583 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Creates the Motor Fuel Minimum Markup Act. Provides that it is unlawful for a retailer, wholesaler, or refiner to sell or offer to sell motor fuel at less than a specified cost with the intent or effect of inducing the purchase of other merchandise or diverting trade from a competitor. Sets forth notice requirements. Provides that a violation of the Act constitutes a violation of the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-18 - Referred to Rules Committee [HB3583 Detail]

Download: Illinois-2025-HB3583-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3583 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED:
New Act
815 ILCS 505/HHHH new
Creates the Motor Fuel Minimum Markup Act. Provides that it is unlawful for a retailer, wholesaler, or refiner to sell or offer to sell motor fuel at less than a specified cost with the intent or effect of inducing the purchase of other merchandise or diverting trade from a competitor. Sets forth notice requirements. Provides that a violation of the Act constitutes a violation of the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change.
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A BILL FOR
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AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the Motor
Fuel Minimum Markup Act.
Section 5. Definitions.
As used in this Act:
"Average posted terminal price" means the average posted
rack price, as published by a petroleum price reporting
service, at which motor fuel is offered for sale at the close
of business on the determination date by all refiners and
wholesalers of motor fuel at a terminal plus any excise, sales
or use taxes imposed on the motor fuel or on its sale, any cost
incurred for transportation and any other charges that are not
otherwise included in the average posted rack price. In this
paragraph, "average" means the arithmetic mean.
"Cost to retailer" means:
(1) In the case of the retail sale of motor fuel by a
refiner at a retail station owned or operated either
directly or indirectly by the refiner, the refiner's
lowest selling price to other retailers or to wholesalers
of motor fuel on the date of the refiner's retail sale,
less all trade discounts except customary discounts for

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cash, plus any excise, sales or use taxes imposed on the
motor fuel or on its sale and any cost incurred for
transportation and any other charges not otherwise
included in the invoice cost of the motor fuel, plus a
markup of OPIS plus one cent to cover a proportionate part
of the cost of doing business; or the average posted
terminal price at the terminal located closest to the
retail station plus a markup of OPIS plus one cent to cover
a proportionate part of the cost of doing business,
whichever is greater.
(2) In the case of the retail sale of motor fuel by a
wholesaler, who is not a refiner, at a retail station
owned or operated either directly or indirectly by the
wholesaler, the invoice cost of the motor fuel to the
wholesaler at least 10 days before the date of sale, or the
replacement cost of the motor fuel, whichever is lower,
less all trade discounts except customary discounts for
cash, plus any excise, sales or use taxes imposed on the
motor fuel or on its sale, and any cost incurred for
transportation and any other charges not otherwise
included in the invoice cost or replacement cost of the
motor fuel, plus a markup of OPIS plus one cent to cover a
proportionate part of the cost of doing business; or the
average posted terminal price at the terminal located
closest to the retail station plus a markup of OPIS plus
one cent to cover a proportionate part of the cost of doing

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business, whichever is greater.
(3) In the case of the retail sale of motor fuel by a
person other than a refiner or a wholesaler at a retail
station, the invoice cost of the motor fuel to the
retailer at least 10 days before the date of sale, or the
replacement cost of the motor fuel, whichever is lower,
less all trade discounts except customary discounts for
cash, plus any excise, sales or use taxes imposed on the
motor fuel or on its sale and any cost incurred for
transportation and any other charges not otherwise
included in the invoice cost or the replacement cost of
the motor fuel, plus a markup of OPIS plus one cent to
cover a proportionate part of the cost of doing business;
or the average posted terminal price at the terminal
located closest to the retailer plus a markup of OPIS plus
one cent price to cover a proportionate part of the cost of
doing business, whichever is greater.
(4) In the case of a retail sale of motor fuel by a
refiner at a place other than a retail station, the
refiner's lowest selling price to other retailers or to
wholesalers of motor fuel on the date of the refiner's
retail sale, less all trade discounts except customary
discounts for cash, plus any excise, sales or use taxes
imposed on the motor fuel or on its sale and any cost
incurred for transportation and any other charges not
otherwise included in the invoice cost of the motor fuel

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to which shall be added a markup to cover a proportionate
part of the cost of doing business, which markup, in the
absence of proof of a lesser cost, shall be OPIS plus one
cent of the cost to the retailer.
(5) In the case of a retail sale of motor fuel by a
person other than a refiner at a place other than a retail
station, the invoice cost of the motor fuel to the
retailer at least 10 days before the date of the sale, or
the replacement cost of the motor fuel, whichever is
lower, less all trade discounts except customary discounts
for cash, plus any excise, sales or use taxes imposed on
the motor fuel or on its sale and any cost incurred for
transportation and any other charges not otherwise
included in the invoice cost or the replacement cost of
the motor fuel to which shall be added a markup to cover a
proportionate part of the cost of doing business, which
markup, in the absence of proof of a lesser cost, shall be
OPIS plus one cent of the cost to the retailer.
"Cost to retailer" and "cost to wholesaler" mean bona fide
costs; and purchases made by retailers, wholesalers, and
refiners at prices which cannot be justified by prevailing
market conditions in this State shall not be used in
determining cost to the retailer and cost to the wholesaler.
Prices at which purchases of merchandise other than motor fuel
are made by retailers or wholesalers cannot be justified by
prevailing market conditions in this State when they are below

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the lowest prices at which the manufacturer or producer of the
merchandise sells to other retailers or wholesalers in this
State. Prices at which sales of motor fuel are made by
retailers, wholesalers, and refiners cannot be justified by
prevailing market conditions in this state when they are below
the applicable cost to retailers and cost to wholesalers.
(1) With respect to the wholesale sale of motor fuel
by a refiner, "cost to wholesaler" means the refiner's
lowest selling price to other retailers or to wholesalers
of motor fuel on the date of the refiner's wholesale sale,
less all trade discounts except customary discounts for
cash, plus any excise, sales or use taxes imposed on the
motor fuel or on its sale and any cost incurred for
transportation and any other charges not otherwise
included in the invoice cost of the motor fuel, to which
shall be added a markup to cover a proportionate part of
the cost of doing business, which markup, in the absence
of proof of a lesser cost, shall be 3% of the cost to the
wholesaler as set forth in this subdivision.
(2) With respect to the wholesale sale of motor fuel
by a person other than a refiner, "cost to wholesaler"
means the invoice cost of the motor fuel to the wholesaler
at least 10 days before the date of the sale or the
replacement cost of the motor fuel, whichever is lower,
less all trade discounts except customary discounts for
cash, plus any excise, sales or use taxes imposed on the

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motor fuel or on its sale and any cost incurred for
transportation and any other charges not otherwise
included in the invoice cost or the replacement cost of
the motor fuel to which shall be added a markup to cover a
proportionate part of the cost of doing business, which
markup, in the absence of proof of a lesser cost, shall be
3%of the cost to the wholesaler as set forth in this
subdivision.
"Determination date" means the day preceding the day of
the sale at retail of motor fuel. If a retailer sells motor
fuel on a day other than the day on which the retailer last
purchased any motor fuel and the sale of the motor fuel by the
retailer occurs at least 10 days after its last purchase by the
retailer, "determination date" means the following dates
selected by the retailer:
(1) the day preceding the day of the sale of motor
vehicle fuel by the retailer; or
(2) the day on which motor vehicle fuel was last
purchased by the retailer.
"Existing price of a competitor" means a price being
simultaneously offered to a buyer for merchandise of like
quality and quantity by a person who is a direct competitor of
the retailer, wholesaler, or refiner and from whom the buyer
can practicably purchase the merchandise.
"Oil Price Information Service" or "OPIS" means the daily
publication containing oil price information that is a widely

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accepted independent fuel price benchmark for supply.
"Petroleum price reporting service" means a wholesale
petroleum product price reporting service that is recognized
nationwide.
"Refiner" means a manufacturer, producer or refiner of
motor fuel.
"Replacement cost" means the cost computed at which the
merchandise sold could have been bought by the retailer or
wholesaler at any time if bought in the same quantity as the
retailer or wholesaler's last purchase of the merchandise.
"Retailer" includes every person engaged in the business
of making motor fuel sales at retail in this State, but, in the
case of a person engaged in the business of selling motor fuel
both at retail and at wholesale, the term shall be applied only
to the retail portion of the business.
"Sell" includes any advertising or offer to sell or any
transfer of motor fuel where title is retained by the
retailer, wholesaler, or refiner as security for the payment
of the purchase price. In determining the selling price of
merchandise by wholesalers, wholesalers of motor fuel,
retailers and refiners under this Section, all fractions of a
cent shall be carried to the next full cent.
"Sell at retail" means any transfer for a valuable
consideration, made in the ordinary course of trade or in the
usual prosecution of the retailer's business, of title to
tangible personal property to the purchaser for consumption or

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use other than resale or further processing or manufacturing.
"Sell at wholesale" include any transfer for a valuable
consideration made in ordinary course of trade or the usual
conduct of the wholesaler's business, of title to tangible
personal property to the purchaser for purposes of resale or
further processing or manufacturing.
"Terminal" means a motor fuel storage and distribution
facility that is supplied by a pipeline or marine vessel, from
which facility motor fuel may be removed at a rack and from
which facility at least 3 refiners or wholesalers of motor
fuel sell motor fuel. For the purposes of this definition, if 2
or more terminals are included in the same geographic area by a
petroleum price reporting service, they shall be considered
one terminal.
"Wholesaler" includes:
(1) a person who stores motor fuel and sells it
through 5 or more retail outlets that the person owns or
operates;
(2) a person who acquires motor fuel from a refiner or
as a sale at wholesale and stores it in a bulk storage
facility other than a retail station for further sale and
distribution;
(3) a person engaged in the business of making sales
at wholesale of motor fuel in this State; and
(4) a person engaged in the business of selling diesel
fuel if that person's sales of diesel fuel accounted for

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at least 60% of that person's total sales of motor fuel in
the previous year or, if that person did not engage in the
business of selling diesel fuel in the previous year, if
that person reasonably anticipates that sales of diesel
fuel will account for at least 60% of that person's total
sales of motor fuel in the current year.
Section 10. Prohibition of loss leaders.
(a) It is unlawful for a retailer, wholesaler, or refiner
to sell or offer to sell motor fuel at less than the cost
provided in subsection (c) with the intent or effect of
inducing the purchase of other merchandise or diverting trade
from a competitor.
(b) A sale of motor fuel by a retailer, wholesaler, or
refiner at less than the cost provided in subsection (c) shall
be prima facie evidence of intent or effect to induce the
purchase of other merchandise, or to unfairly divert trade
from a competitor, or to otherwise injure a competitor.
(c) For the purposes of this Section:
(1) a retailer shall not sell motor fuel at a price
greater than the cost to retailer, as specified in Section
5; and
(2) a wholesaler, or refiner shall not sell motor fuel
at a price greater than the cost to wholesaler, as
specified in Section 5.

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Section 15. Notice requirements.
(a) If a retailer, wholesaler, or refiner, acting in good
faith, lowers the price of motor fuel below the applicable
price specified in subsection (b) of Section 10 to meet an
existing price of a competitor, the retailer, wholesaler, or
refiner shall submit to the Attorney General notification of
the lower price before the close of business on the day the
price was lowered in the form and the manner required by the
Attorney General.
(b) A retailer, wholesaler, or refiner that fails to
comply with subsection (a) creates a rebuttable presumption
that the retailer, wholesaler, or refiner did not lower the
price to meet the existing price of a competitor.
(c) If a retailer, wholesaler, or refiner complies with
subsection (a) they shall not be held liable for violating
this Act.
Section 20. Exceptions. This Act does not apply to sales
at retail or sales at wholesale if motor fuel is sold by a
person to a wholesaler, who may sell the motor fuel at either
retail or wholesale.
Section 25. Enforcement. A violation of this Act
constitutes a violation of the Consumer Fraud and Deceptive
Business Practices Act. All remedies, penalties, and authority
granted to the Attorney General by that Act shall be available

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to the Attorney General for the enforcement of this Act.
Section 30. Rulemaking. The Attorney General may adopt
rules to implement and administer this Act.
Section 35. The Consumer Fraud and Deceptive Business
Practices Act is amended by adding Section HHHH as follows:
(815 ILCS 505/HHHH new)
Sec. HHHH. Violations of the Motor Fuel Minimum Markup
Act. Any person who violates the Motor Fuel Minimum Markup Act
commits an unlawful practice within the meaning of this Act.