Spitzer cracks down on gasoline gouging

Before the damage that Hurricane Katrina wreaked on oil refineries in the Gulf of Mexico became evident (and in some cases, before the storm even made landfall), some gasoline station owners around the country pumped their prices considerably higher than others in anticipation of rising prices.

That's a form of gouging, and New York Attorney General Eliot Spitzer took action recently against station owners across the state who used the natural disaster as an opportunity to fatten their wallets.

After fining 15 station owners, Spitzer said he hoped it would send a clear message to others that "you cannot, under New York law, use an environmental emergency to raise prices." One of those stations was in Hancock, where the price rose from $2.65 a gallon before Katrina to $3.52 just after the storm.

Good for the attorney general. However, why make the penalty a mere $10,000? If the stations did make a hefty profit, that wouldn't be too much of a deterrent. Why not fine them $100,000 each?

Across our border, Pennsylvania's Attorney General Tom Corbett has asked the public to report any gas gouging at his Web site, www.attorneygeneral.gov/complaints.aspx?id=451.

With gas prices fluctuating wildly, more opportunities for would-be gougers may arise. Let's ensure they'll think twice about it. Make the penalties tougher.

Everybody take note..... It's the gas STATIONS, not Big oil that everybody has been blaming. Well, most here understood higher price of crude ='s higher gas prices.

I don't understand. If you are a gas station owner, can't you set your price at whatever you want to?

I have heard shortage for years now and never have I gone to get gas, that I didn't pump it into my tank and pumped money into the stations pocket at the same time. No shortage, ever.

It's nice to read that some have done something about it,

but it isn't enough. I agree hit them where it hurts US, in their pocket books...$10,000, that's a joke!

Soooooooo, how do "We The People" stop this???

Kute

In south FL, many stations closed down for several days because of gas shortage.

I'm sure they still had bills to pay even though they could not sell gas. The profits from gas sales go to cover costs of operation. I have no problem with a shrewd owner raising his price in anticipation of being out of business for a few days or a week.

The competition in the market prevents this from being a standard practice.

Here in IL, our fuel distributor was given allotments of fuel. He had to decide who he was going to deliver to and how much they would get. Pretty much, if you weren't a regular cutomer of his...you didn't get fuel. Luckily, we do a huge amount of business with the guy...but even we had a limit of how much we could get per week.

Well, you learn something new every day:)

Thanks for the info guys.

Kute

I paid $1.98 per gallon on Christmas Day. Is the rest of the country dropping their gas prices as much as they are around here?

It's lower because the price pre barrel of crude is around $10-12 cheaper. Winter blend gasoline is cheaper to make, you can raise the RVP on winter gas. Most of all, the demand for gas is a lot lower. All those things have helped get the prices to where they're at now.

I can see fining them if they were near New Orleans and raised prices - that would be gouging. Tripling the price for plywood at Home Depot in the vicinity of a hurricane prior to its arrival would be gouging too. Raising prices a thousand miles or more from the storm doesn't strike me as gouging.

If my local gas station wants to raise the price to $10 a gallon, I'm all for it. He won't sell any gas, though. There are too many other stations in the area who provide competition. I'd only have a problem with it if all of the oil companies conspired to artificially jack up prices on me.

I got out and about today and the gas prices I saw were anywhere from 2:13 up to 2:20 and I think my step dad said the cheapest around is around 2:10 - that is in the Norfolk, VA area.

Liz

"I'd only have a problem with it if all of the oil companies conspired to artificially jack up prices on me."

LT - you cannot be serious? You don't think this is happening? They went up like a rocket after the hurricane, because of the 'anticipated' backlash from damaged oil platforms and refineries. Now that we KNOW that the damage is minimal, the prices are s l o w l y coming back down... what a crock of sh*t.

Additionally, it is my firm belief that we are being conditioned. Think about it. A year ago gas was about $1.35 a gallon. A month ago it was close to $3.00 a gallon and now when we drive by the station we see $2.15 and think... that's not bad...

What Shawn said about California pricing is true, and at $2.17 per gallon-play Dixie and celebrate!

Charlie