Senate Backs Gas Discounts

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Denver (AP) Supermarkets would be able to keep offering gas discounts to their customers under a bill backed Tuesday by the State Senate.

Last year, two independent gasoline dealers in Montrose challenged King Soopers' promotion in federal court. A jury determined that the promotion violated Colorado law that prohibits selling fuel below cost.

The bill, which has already passed the House, will let supermarkets give discounts on gas to lure more customers into their stores. But selling a wide range of items below cost will still remain illegal.

Opponents, including Senator John Morse, fears the bill will help big box retailers drive smaller businesses out of town.

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