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Price-Gouging Probes Spread to 6 States

Gas prices drops 5 cents in 2 days

By Joe Benton
ConsumerAffairs.com

September 19, 2008

• OPEC Unable to Stop Gas Prices' Slide • Give Thanks for Falling Gas Prices • Gas Prices Fall Below $2 a Gallon • Oil and Gas Supplies Rise • Gas Prices Accelerate Their Decline • Gasoline Prices Down 19 Cents in a Week • Charlotte Gas Stations Make Refunds to Consumers • Oil Snaps Back As Markets Sense Post-Election Bounce • Gas Prices Settle Still Lower for Weekend • Gasoline Prices Keep Falling • Gas Below $3 Nationwide • Average Gas Price Down to Nearly $3 a Gallon • Gas Prices Drop, Along With Oil • Gas Prices Head Lower as Economy Slows • Gas Price Declines for 9 Days • Gas Prices Continue Downward Trend • Oil Prices Surge By Record $25 a Barrel • Gas Prices Drop for 5 Days • Price-Gouging Probes Spread to 6 States • Investigations of $5 Gas in North Carolina, Florida, and Virginia • Shortages, Price Hikes Follow Ike in Southeast • States Investigate Gasoline Price Gouging Claims • Pumping More U.S. Oil Won't Lower Prices, Consumer Group Says • Oil Prices Fall, Gas Prices Surge • Gas Prices Slide 8 Percent from Record --- • More ...

Price gouging investigations are underway in Connecticut, North Carolina, Michigan, Virginia, Texas and Florida following Hurricane Ike as the average national price for regular self-serve gasoline heads down.

Connecticut Governor Jodi Rell announced that the investigation into complaints from consumers about a sudden increase in gas prices has broadened to include 10 wholesalers serving gas stations around the state.

"The pain at the pump is nearly unbearable and we are going to make sure the only thing fueling these price increases are the natural forces of supply and demand," Rell said. "We will not permit anyone to use these natural disasters for profit," he said.

Connecticut has issued subpoenas after more than 500 consumer complaints to a hot line established for residents to report possible price gouging. In all, the state has subpoenaed 10 wholesalers, seven of them based in Connecticut.

In North Carolina, Attorney General Roy Cooper issued subpoenas to 15 gas stations in the state this week as part of an investigation of price gouging.

"It's okay to make a profit, but it's not right to run up the costs on consumers at a time like this," Cooper said.

The latest round of subpoenas involved gas stations where prices were reported between $5.35 and $5.99 per gallon.

In Michigan, Attorney General Mike Cox announced that his office is questioning more than a dozen gas station owners identified as having dramatically raised their prices in the 24 hours surrounding Hurricane Ike's landfall.

The Texas attorney general issued a harshly worded statement warning to people " who engage in price gouging" and Florida Governor Charlie Crist said his office is investigation more than 2,000 complaints of price gouging on gasoline.

In the Tallahassee area, there are reports of stations charging $5 a gallon for regular gasoline.

Virginia governor Tim Kaine has sent investigators throughout the state to check price gouging allegations.

Across the country, prices fell for the second consecutive day, dropping 2.8 cents to $3.807 a gallon, according to the AAA Fuel Gauge Report.

The average price for regular gasoline jumped almost 19 cents a gallon following Hurricane Ike. The current price remains 9 cents higher than one month ago and $1.02 higher than one year ago.

The good news is regular gasoline sells for 31 cents less than the record of $4.114 set July 17, a decline of 7.5 percent.

Six states now report gas prices above $4 a gallon, according to AAA. They are Alaska, Georgia, Hawaii, Illinois, Indiana, and Michigan.

Alaska continues to be the state with the most expensive gas prices, at $4.334 a gallon. The cheapest gas is found by consumers in New Jersey at $3.50 a gallon.

Gas price roundup

Here is a look at some gasoline prices from around the country in the ConsumerAffairs.com weekly Gas Price Roundup.

California: The average price of regular in the state is now lower than the average national price. Californians are used to paying higher gas prices than most of the states but this week the average price is $3.777 a gallon.

"Hurricane Ike has wreaked havoc with gasoline supplies and prices in many other areas, pushing prices over $4 a gallon in Midwestern and Southern states," said Jeffrey Spring, a spokesman for the Automobile Club of Southern California.

"California is now in the rare position of having an average gas price that is less than the national average. Local prices have not risen because most of our gasoline is refined in this state. But if shortages continue to cause problems elsewhere, we could see California prices rise as supplies are diverted to other areas," Spring said.

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $3.744 a gallon, which is 3.9 cents less than last week.

In San Diego, the price is $3.744, which is 4.2 cents under last week's price.

The highest gas price in California is still found in San Francisco at $3.959, up four-tenths of a cent since last week.

The lowest price is $3.29 a gallon found in Olivehurst, a small town north of Sacramento.

Texas: The average price of a gallon of gasoline increased over 16 cents compared to last week. Still, the state average of $3.701 is about 13 cents lower than the national average.

In Houston gas sells for $3.692, up 23.7 cents from last week.

"As South Texas recovers from Hurricane Ike, AAA Texas is finding that gas prices jumped significantly but according to Thursday's numbers the rate of increase has slowed in the past couple of days, so we may be nearing a peak," said AAA Texas Houston spokesperson Sarah Schimmer.

"Oil prices this week are more than 50 dollars a barrel lower than their mid-July high, and the big question now is how long it will take the refineries and oil rigs to get power restored and come back online."

San Antonio, at $3.609, has the least expensive average price as compared to other metropolitan areas in the state.

Corpus Christi reports the next least expensive gas in the state at $3.629.

Dallas is reporting a price of $3.700 a gallon, an increase of 22.4 cents since last week.

Reporting the highest price in the state is Texarkana at $3.784 followed by Fort Worth at $3.704.

"There have been reports that some gas stations are trying to take advantage of customers, but AAA Texas has found that these stations are in the minority," Schimmer said. "If you feel you have been a victim of price gouging, keep your receipts and contact the Texas Attorney General's office to file a report."

Florida: Despite state officials this week assuring motorists there is an adequate supply of gasoline statewide, consumers continued to grapple with shortages.

Fuel shortages are affecting people in Tallahassee and areas of northern Florida hardest hit by the disruption in fuel pipeline deliveries from the Gulf.

Last Friday, before Ike struck the Gulf Coast and headed toward Texas, the wholesale price of gas spiked for many gas retailers.

Gas stations quickly increased prices, which triggered price gouging complaints throughout the state. Earlier this week, the state attorney general opened an inquiry into the gouging allegations, sending subpoenas to several gas suppliers and dealers.

The attorney general is reviewing more than 2,653 price gouging complaints.

The average price of regular gasoline in Florida is now $3.842.

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