(CN) – A Texas judge ordered a supplier to keep selling gasoline to an Austin-area gas station that sells gas for 40 cents cheaper than its competitors.
The Mustang Travel Center, of Buda, at state Highway 21 and U.S. 183, has been selling regular gas for $2.99 a gallon, 40 cents cheaper than the Tiger Tote down the road, according to KXAN-TV.
Mustang claims that its supplier, Johnson Oil, has limited its gas deliveries since Mustang owner Mo Moghadassi dropped his prices.
On Tuesday, a state judge ordered Johnson Oil to sell its gas to Mustang, though Johnson need not sell all the gas the Mustang orders. This replaces an earlier order that prohibited Johnson from limiting its sales to Mustang.
KXAN reported that Johnson Oil defied the judge’s order, forcing Moghadassi to close his station early on many days.
“Every night or afternoon when Mo has to shut down his pumps his business is hurt,” Moghadassi’s attorney Alex Metcalf told KXAN. “It’s hurt by people not coming in and those who drive by, see no gas and scratch this place off.”
Moghadassi told KXAN that the money he loses on gas he makes up by the volume of customers who buy other stuff.
A happy Mustang customer, Odeza Blair, told KXAN: “It’s wrong to cut people back who are trying not to rip off the community.”
Moghadassi says Johnson Oil wanted him to raise his prices higher, but he refused, saying that would be price-fixing.
Johnson has an exclusive contract to sell Mustang gasoline. In court, a representative of Johnson Oil denied pressuring Moghadassi to raise his prices.
Buda is about 15 miles southwest of Austin.