Discounted gas if you pay for it in cash?

Question

Were I live, in Connecticut, gas stations wanted to give people who payed for gas in cash a discount. I am assuming because credit card companies charge them a percentage for using them. Ok, then a little wile ago the gas stations went to the state officials and asked them to allow them to help their cash paying customers. I guess the law makers said it was ok and 6 gas stations in CT are giving away the discounts. Now understand Im not that smart when it comes to economics but I do remember learning about free market when I was in high school. So with that being said my question to you guys is living in a free market, why did the gas stations have to ask the state for permission? Thanks

Answer 1

we don't have truly free markets, and for good reason.  our markets are regulated, to prevent large players from dominating at the expense of smaller players.  This commonly includes minimum markup laws that prevent large operators from pricing the smaller competition out of the market, and then jacking up prices to take advantage of oligopoly pricing.

You are correct that the cash discounts are because of the high fees credit card companies charge businesses who accept the cards.

Answer 2

The American economy is a mix of free market and command economy  This is because there are pro and cons with both.  In high school i assume it's easier to give examples of US being a free market while a communist country as a command economy.  

There are regulators like FTC that try to make sure that companies don't create inefficiencies in the market or uncompetitive practices.

Answer 3

because its a commodity, commodities have regulation

Answer 4

Likely there is some government regulation of gasoline pricing in Connecticut. Or alternatively the regulations apply to credit card transactions. Which means it's not really a free market, is it.