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 Issues Price Gouging Fines

The number of gas stations under investigation for price gouging is up to 200. The charges came in the wake of Hurricanes Gustav and Ike last fall. So far, nine stations across the state have been fined for inflating prices when gas was scarce in September and October. Some of the stations simply have to refund money to customers who can prove with a receipt they bought gas during the gouging. Others have to pay up to $5,000 in fines to the state. The state received about 2,000 complaints from residents, some alleging stations charged them as much as $9.99 a gallon.

(Associated Press)

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.

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.