FOR YOUR INFORMATION................April 25, 1988


     The Federal Trade Commission staff has said that New
Jersey's prohibition against self-service gasoline stations
results in increased annual costs of between $131 million and
$348 million to consumers in that state.
     The comments were filed by Commission staff in response to a
request by Elizabeth E. Randall, Majority Whip in the New Jersey
General Assembly.
     The staff letter noted that "New Jersey consumers stand to
gain millions of dollars per year in lower prices if self-service
stations, the predominant method of gasoline retailing in all but
one other state, were legalized."  In the 48 states and the
District of Columbia where self-service stations are allowed, 78
percent of consumers purchase self-service gasoline, suggesting
that "most consumers value the monetary savings of self-service
more than the added convenience of full-service."  The staff
concluded that "it is clear that the ban does have a substantial
impact on the gasoline retail market, and that it imposes a heavy
monetary burden upon New Jersey consumers."
     The current statutory prohibition on self-service gasoline
stations in New Jersey was adopted in 1949, explicitly for fire
safety reasons.  The staff letter stated that "the safety
concerns that may have given rise to the prohibition four decades
ago appear to have long been addressed through improvements in
technology and government safety standards."
     The comments represent the views of the FTC's Bureaus of
Consumer Protection, Economics, and Competition, and are not
necessarily those of the Commission or of any individual
Commissioner.  The Commission voted 4 to 1 to authorize
presentation of the comments, with Commissioner Azcuenaga
dissenting.
     Copies of the staff comments are available from FTC's Public
Reference Branch, Room 130, 6th Street and Pennsylvania Avenue,
N.W.  20580; 202-326-2222; TTY 202-326-2502.


MEDIA CONTACT:   Anna Davis, Office of Public Affairs
                 202-321-2183

STAFF CONTACT:   Robert Stoner, Bureau of Economics
                 202-326-3518


[NJ-gas]