ALBANY — The state Senate passed legislation Tuesday to outlaw zone pricing of gasoline.

The bill, sponsored by Sen. James S. Alesi, R-Fairport, was debated by senators during the first afternoon of the "special economic session" called by Gov. David A. Paterson to address his proposed budget cuts and property tax cap.

"We're continuing to see sky-high prices for gasoline," Mr. Alesi said in a press release. "One of the underlying contributors to the high gas prices, especially in upstate New York, is a little known practice known as 'zone pricing.' The oil companies know that through 'zone pricing' they can target certain areas where people are more apt to pay higher prices for gasoline."

Zone pricing is a technique used by petroleum wholesalers in which they determine prices based upon the demographics of a particular region.

In the sponsor's memo attached to the bill, Mr. Alesi explained his rationale: "If one area typically is more affluent than another ... the price per gallon determined by the wholesaler, at which gasoline is offered for sale to the retailers may be slightly higher in that area, than an area where the clientele is primarily a working class neighborhood."

Increased wholesale prices are then passed on to the consumer at the gas pump, "Thus, the result of zone pricing is higher prices at the pump for individuals who are assumed to be able to pay more," Mr. Alesi said.

The bill passed the Assembly on June 24. It was sent to Gov. Paterson for his consideration. If the governor signs the bill into law, the state Attorney General could prosecute violators, who would face fines of up to $10,000.