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Shell Stations Targeted in Florida Price-Gouging Probe

July 13, 2005
Florida Attorney General Charlie Crist has issued subpoenas to two oil companies to learn why gasoline prices charged to gas stations increased as much as 30 cents per gallon as Hurricane Dennis approached the Florida coastline.

Tate Oil Company, Inc., a gas distributor, and Motiva Enterprises, LLC, one of its suppliers, were served their subpoenas Monday afternoon. Motiva is a subsidiary of Royal Dutch Shell.

Based on a staggering number of price-gouging complaints logged in conjunction with Hurricane Dennis, the Attorney General's office has launched a widespread investigation into allegations that fuel prices across the state may have been raised improperly.

The preliminary investigation has found that the number of Shell gas retailers involved in price gouging complaints was more than double any other retail brand. The early stages of the investigation have revealed that individual station owners may have been instructed to raise prices by suppliers or corporate officials.

Initial questioning by investigators showed that many of the stations targeted by price gouging complaints are Shell stations that receive their gas from Tate Oil. A portion of Tate Oil's supply is purchased from Motiva.

Tate Oil, which is owned by Phillips Oil, Inc., of Crestview, also owns some gas stations throughout the state. The subpoenas request information from both companies, including their prices for the previous 30 days, lists of stations they supply and the amount their prices increased after Governor Jeb Bush declared a state of emergency on Thursday. Responses to the subpoenas are due by July 25.

"Floridians are unfortunately all too familiar with the danger and devastation that hurricanes bring. Many of the citizens who complained about gas prices were doing the most important thing they could do as Dennis approached – moving their families out of harm's way," said Crist. "Price gouging is one of the worst ways to take advantage of people in a time of great need. We will get to the bottom of this."

The Attorney General's No-Scam Hotline logged more than 1,600 calls after Governor Bush declared Florida to be under a state of emergency. The hotline remained active through the weekend, fielding price-gouging complaints from across the state.

The overwhelming majority of the complaints were gasoline-related, with more than 1,550 incidents of gas price hikes reported. Reports of increases at the pump have ranged from 10 cents to one dollar per gallon. Of the complaints regarding gas price gouging, 243 involve Shell gas stations.

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