State Fines 30 Ga. Gas Stations for Price Gouging

More than 30 Georgia gas stations have paid fines to the state office of consumer affairs over alleged price gouging in the wake of gulf coast hurricanes last fall.

Some stations have to pay up to $10,000 in fines to the state, while others must refund money to customers who can prove they bought gas during the price spike.

The list includes a $20,000 fine against nine Tennessee-based Pilot travel center stations.

The stations are among 200 the state is investigating over complaints of unfairly raising gas prices when hurricanes shuttered several gulf coast oil refineries and left several southern states without enough gas.

Under state law, businesses have to prove they were making the same profit with their elevated prices as they were before the governor activated the anti-gouging statute.

(AP)

State leaders mull gas crisis solutions

Some 200 motorists lined up at a Kroger gas station in Marietta, Ga., on Sunday, Sept. 28, 2008. Scenes similar to this were common throughout the metro Atlanta area, as well as in other parts of the state in recent weeks. (Dave Bender)

Georgia leaders are debating whether to revise the state's emergency fuel plan and are considering ways to bolster gas supply in the aftermath of the abrupt shortage of gas that sent some motorists into a frenzy.

As lines outside gas stations grow shorter, frustrating searches for fuel have given way to soul-searching among Georgia legislators. Critics, meanwhile, have sharply condemned the state's response to the crisis.

The gas shortage started with the one-two punch of Hurricanes Gustav and Ike, which shut down refineries along the Gulf Coast. And the hankering among panicky drivers to top off their tanks when they passed an open fueled station made things worse.

Soon many gas stations around metro Atlanta were shuttered, and some lines outside those that stayed open could stretch for hours. Radio stations eagerly broadcast the names of open stations, and some drivers tailed fuel trucks in hopes of filling up their tanks.

Georgia's leaders updated an emergency plan last year to better handle a gas crisis. Among other options, the plan allows the governor to limit drivers to fill up their tanks every other day and set minimum and maximum limits on how much fuel they can purchase.

Gov. Sonny Perdue lobbied the Environmental Protection Agency to permit delivery of high-sulfur gasoline to metro Atlanta because the cleaner-burning low sulfur fuel normally required was in short supply.

But he ruled out more stringent options amid worries they would spark an even greater panic. Some of the measures proved too difficult to enforce while others weren't feasible, said Perdue spokesman Bert Brantley.

Gas retailers, for one, complained their pumps weren't equipped to set minimum fuel limits. And state officials were uncertain how they would enforce the every-other-day limits if they were enacted.

"You're looking at asking retailers to hire additional folks to be out there and try to enforce something like this," said Brantley. "And what do you do about the guy who's on empty, but it's not his day?"

Perdue, who returned Friday from a weeklong trade mission in Europe, has also taken heat from critics for the his absence in the middle of the fuel crisis.

"The governor should have gotten on MARTA to go to the Capitol as an example to use mass transit," said DuBose Porter, the House's top Democrat. "But he was in Spain, so it would be kind of difficult for him to lead by example."

Perdue's office countered that the governor was still calling the shots from abroad.

"This isn't the '50s where you'd go out of the country and not be reachable for a week," said Brantley. "He is incredibly reachable.

As the dust settles, the governor's office said it will consider several changes to the emergency gas plan, including a more structured policy to apply to the EPA for high-sulfur gasoline permits.

And state officials say they will explore ways to bolster supply of gas. Two pipelines that run from Houston through Georgia supply most of the state's gas, but officials sound eager to explore ways to ship in more fuel.

"There are some capacity issues and supply issues we want to look at in the future," said Shane Hix of the Georgia Environmental Facilities Authority. "We'll look at improving supply, including the diversity of supply from the port of Savannah."

House Speaker Glenn Richardson's office said he'll be looking at "various options" to prevent another crisis.

Legislators could also consider another effort to speed along the construction of a $2 billion pipeline that would stretch from Louisiana to Atlanta's suburbs. A bill to fast-track the construction failed in the Legislature last year, but the project is still moving forward.

Some say the state should have done more.

Democrats said the state should have warned the public about the tight gas supply sooner, and should have been quicker to implement anti-gouging protection. And Porter, the House leader, said legislators should dedicate more funding for alternative transportation by allowing a penny of the gas sales tax to fund mass transit.

"We're lucky it was a better case scenario, not a worst case scenario," Porter said. "But we weren't prepared either way."

Tom Smith, a finance professor at Emory University's Goizueta Business School, said legislators should tighten gouging rules and draft firm plans to take to the airwaves to soothe panicky residents and encourage them to telecommute amid the crisis.

"It's times like these where you have to give people incentives to behave in ways that are counterintuitive," said Tom Smith, a finance professor at Emory University's Goizueta Business School. "You have to convince them to buy less gas."

Some frustrated drivers simply wanted more of a warning.

Lining up at the pump in Marietta, on Sunday, Sept., 28, 2008. (Dave Bender)

Jack Brownfield, who passed 10 Atlanta gas stations this week before finally finding one with one fuel, said state officials should have done more to warn residents about Georgia's precarious gas supply.

"It was predictable," he said.

(The Associated Press)

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

Motorists fuming over continuing gas shortages

A sign of the times at a pump on West Paces Ferry Road in Atlanta on Sept 28, 2008. (Dave Bender)

Gas lines were long and patience short across Atlanta over the weekend – that is, when there was gas to be had at all. Dave Bender drove from midtown to Marietta, and spoke with motorists at stations along the way.

“It’s crazy – there’s no gas anywhere; North Carolina through Texas…”

That’s Brian, a motorist from New Mexico who’s driving across the southeast.

But right he’s sitting at a station with empty gas pumps on West Paces Ferry Road. That’s a scene echoed throughout the metro Atlanta area.

“…they’ll let you have ten bucks of gas at some places; there’s a lot of this: ‘Sorry – we’re out of gas – you can see the sign’s right there.’”

Suppliers say that’s because they’re still struggling to get enough fuel to gas stations, from Gulf Coast refineries hit by hurricanes weeks ago.

One of the few stations that is open this Sunday afternoon is in Marietta.

Some 200 motorists lining up at a Kroger gas station in Marietta, Ga., on Sunday, Sept. 28, 2008. (Dave Bender)

And station clerk Joel Freley, says the fill-up swarm is keeping his register spinning:

“I made over almost $2,000 in three hours.”

Some 200 vehicles are idling in several lines to get to his eight pump islands – with more desperate drivers pulling in all the time.

One of them is Margaret Batts, who’s hoping to reach the pumps before they shut down for the day:

“Now they only have 400 gallons, so there’s no guarantee I’m even going to get any.”

James Cook of Marietta is sitting ten cars in front of her:

"I have a [Ford] Explorer, this gas tank, and a two gallon gas tank -- yeah, and I don't care what anybody's got to say about it."

Cook almost lost his cool when he thought the car in front of him had drained the last drop:

“He said the tank was outta’ gas, and I’ve been sitting here forever – driving around for three hours looking for gas. I would have flipped out if that was the case.”

Suppliers and state officials are telling drivers like Cook to be patient: it’ll likely take a few more weeks before fuel supplies are replenished.

Lining up at the pump in Marietta, on Sunday, Sept., 28, 2008. (Dave Bender)

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

Atlanta: Pain at the pump

Motorist fills up Hummer at a station in midtown Atlanta. (file/Dave Bender)

Gas stations in parts of Georgia and the South continue to run out fuel as worried drivers keep filling their tanks. The problem is especially bad in Atlanta.

It’s a hit and miss situation in Atlanta for people who need gas. Long lines form as soon as a station gets a delivery and empties out within hours. Eric Rockcliff who has a Ford Expedition stays in close contact with friends these days:

“I set my alarm to 2:45 am and headed out look for gas. “

Rockcliff got up at 3 am one night and found gas in his neighborhood. Through networking and texting with friends he knew that QT stations were likely to have gas:

“The one closest to my house, even at 3 am line down the street in both directions.”

Rockcliff knew of another QT down the street and got lucky… no lines.

This hit and miss situation, officials say, is caused by a shortage of supply from gulf refineries still reeling from hurricane shut downs. They warn it could be a couple of weeks before things are back to normal.

Officials blame slow supply from gulf refineries still working to get up to full capacity after 2 hurricanes this season.

Click here for more GPB News reports about the gas crisis.

Gas crunch = cancel UGA game?

As drivers in many parts of north Georgia continue their search for gasoline, there has been one call for a measure that many may consider drastic--cancel tomorrow night’s Georgia-Alabama football game. That is the suggestion of an Atlanta petroleum executive, who questions whether it’s smart for tens of thousands of drivers to strain spotty gas supplies on the way to Athens. Governor Sonny Perdue’s spokesman responded, calling the idea "ridiculous".

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.