Officials still investigate gas price gouging

State officials are investigating over 1,500 complaints of gas price gouging. From that, officials have so far subpoenaed sales records of more than 150 gas stations.

Bill Cloud with the Governor’s Office of Consumer Affairs, says the range of prices has been all over the map:

"We did have some people that were above $6.00 a gallon, but then there were other people that were above the $4.50--$5.00 range".

Governor Sonny Perdue activated the state’s anti-gouging law September 12th soon after Hurricane Ike hit the Gulf Coast. But Cloud says complaint calls have still come in at a rate of about 25 a day.

He says it may be awhile before customers can get some money back.

"The stations have 30 days to respond to us. We have to review the responses, then we have to get them in here to negotiate a settlement. Certainly the first settlement we always try to negotiate is for restitution to the customers".

According to the AAA fuel gauge report, Georgia’s current average for a gallon of regular unleaded is $3.72. That’s 25 cents higher than the national average.

Bill Heard to close all dealerships

With a struggling economy and an inventory heavy with trucks and SUV’s, the largest Chevrolet dealership chain in the country has announced closure of all its locations.

Bill Heard Enterprises will close its remaining 13 nationwide dealerships--five locations in Georgia, along with those in Florida, Alabama, Tennessee, Texas and Nevada. Another dealership in Arizona closed September 12th.

The Columbus, Georgia based company says the mix of rising gas prices, a slowdown in car sales and the banking crisis created an atmosphere where its resources could not keep pace. Last month, GMAC Financial Services pulled credit for new inventory at some of the Bill Heard dealers.

The company has also been beset by legal troubles. The Governor's Office of Consumer Affairs has a lawsuit against Bill Heard, charging it with a 16-year pattern of deceptive sales practices. It’s not known how the closures will affect the state lawsuit.

The closing of Bill Heard dealers will affect about 27-hundred employees.

Gas shortages still widespread

Motorist fills up Hummer at a station in midtown Atlanta, Sept. 22, 2008. (Dave Bender)

Gas stations in much of the southeast are having a tough time getting enough fuel. Many have temporarily closed, and cars lined up at the pump are a not uncommon sight.

Atlanta, Nashville, and Tallahassee, are among other cities in the region, reporting closures or limited fuel supplies.

Motorist Tate Nichols, who lives in Atlanta suburb Stone Mountain, says he’s seen the biggest problems in town:

“Generally, out in my area, I haven’t had any problem finding gas - I have, in midtown today run across a couple of empty stations that do not have gas - but I found one within two minutes of looking that did have gas.”

State and industry officials say one factor behind the shortage are interrupted supplies from refineries in the Gulf of Mexico. Many closed for the duration of hurricanes Gustav and Ike.

And, an Atlanta law requiring stations to use cleaner-burning fuel means gas can't be easily diverted from better-supplied areas.

Governor Sonny Perdue and other officials here say they expect fuel supplies to return to normal later this week.

Click here for more GPB News coverage of the gas crisis.

Perdue may call in feds over gas gouging

The dramatic spike in gas prices from Hurricane Ike has prompted The Office of Consumer Affairs (OCA) to investigate hundreds of complaints of price gouging at the pump.

Officials have issued subpoenas for sales records of 25 gas stations statewide, and say more are on the way.

Bill Cloud, the director of administration and external affairs at the OCA says they've received over 700 complaints since Governor Sonny Perdue imposed an anti-gouging law last Friday.

But, Perdue says the skyrocketing numbers at the pump weren't only due to decisions by station owners :

"...[they] were the prices that some of the stations were having to pay up the line, and we're trying to investigate where that began and why, and what steps we should take – that probably would be outside of the purview of the State of Georgia, and while I’m a free-market guy, I certainly think it bears investigation by our federal government."

Perdue says Valdosta and Augusta were having the worst problems statewide in getting fuel from refineries knocked out by last week's hurricane.

Perdue and OCA officials, though, say the situation is improving and expect supply to be back to normal next week.

Click here for more GPB News coverage of the gas crisis, and here for more on Hurricane Ike.

State officials investigate gas price gouging

State officials are beginning to investigate complaints of price gouging at numerous gas stations across Georgia. This comes in the wake of Hurricane Ike’s trek through the Gulf and Texas over the weekend.

Through late this morning, the Governor’s Office of Consumer Affairs says they had received 80 complaints of unreasonable spikes in prices since 7pm Friday. The calls have come in from all parts of the state, and about different companies’ stations.

Early Friday night, the Governor issued an executive order against price gouging. Its aim is to make sure the prices people are paying are in-line with what retailers pay. Over the weekend some drivers around the state saw spikes of over $5.00 a gallon at certain stations, along with some stations running out of gas.

According to the AAA fuel gauge report this morning , the average price in Georgia for a gallon of regular unleaded was $4.16--a rise of 16-cents from Sunday.

The brunt of Hurricane Ike missed the biggest concentration of oil and gas refineries in the Gulf, with damage not as severe as feared. Experts predict gas prices to stabilize this week.

New website targets young consumers

Georgia wants young adults to become smarter consumers. That's the goal of a new website launched today by the Governor's Office of Consumer Affairs. www.consumered.com targets young people by walking them through major financial decisions, such as buying a car, a house, and dealing with credit and debt.

New website targets young consumers

Georgia wants young adults to become smarter consumers. That's the goal of a new website launched today by the Governor's Office of Consumer Affairs. www.consumered.com targets young people by walking them through major financial decisions, such as buying a car, a house, and dealing with credit and debt.

State issues record fine

Georgia has issued its highest fine ever against a company for violating the state’s Fair Business Practices Act. The Governor’s Office of Consumers Affairs slapped Louisiana-based Smart Automotive and its two owners with a total of $5 million-dollars in penalties. The OCA says the company sent deceptive mailers to Georgia consumers. Examples include announcing sales that never took place, telling people they had won prizes when they hadn’t, misrepresenting monthly car payment amounts, and falsely claiming that people with bad credit were pre-approved.

Georgia sues Bill Heard companies

The state is suing a well-known chain of car dealerships. The Governor’s Office of Consumer Affairs says it’s filed suit against Bill Heard Enterprises and Bill Heard Chevrolet Company. The OCA says the companies sent Georgians false and deceptive advertisements. The companies allegedly lured people into dealerships by sending out a flier that looked like a recall notice by General Motors. In fact, GM had issued no such recall. The OCA says the suit comes after 15 years of failed attempts by the Office of Consumer Affairs to get Bill Heard companies to obey Georgia’s Fair Business Practices laws.