Price Gouging Investigations Heat Up

By Jessica Taloney Reporter
.

Gas stations suspected of price gouging could have an investigator knocking on their door this week. Price Gouging Investigations Heat Up
Published: Tue, September 16, 2008 - 5:20 pm
Jessica Taloney
Jessica Taloney
Alabama gas stations suspected of price gouging could have an investigator knocking on their door this week.

The state Attorney General's office says they have received more than 2,000 complaints from consumers feeling ripped-off, and a spokesperson for the agency says they may issue subpoenas within the next few days.

"We have been overwhelmed by calls," says Chris Bence, Chief of Staff. "It's difficult to say with any certainty, but I would say there probably will be subpoenas served on certain gas stations this week."

The highest gas price recorded in Mobile County is at a station in Citronelle, who according to Mobile's District Attorney, is charging $4.45 for regular unleaded. In Birmingham, the AG's office received a complaint of $6.99 gas.

"I'm driving up and down the highways, and I'm seeing the cost and I'm having the same reaction everybody else is having," says Mobile County District Attorney John Tyson, who compiled a report Tuesday of the price of gas at every station in his jurisdiction. Even if the gas stations or their distributors didn't hike prices over the 25% threshold, which constitutes price gouging under state law, Tyson insists there is another law that may have been broken.

"The Deceptive Trade Practices Act doesn't have those kinds of floors or ceilings," says Tyson, who tells News Five companies could be prosecuted under this law if they took advantage of hurricane evacuees needing a vital service.

Tyson would not say how long his investigation will last, but says his office is monitoring gas prices every day.



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“When the law was enacted, national gasoline prices averaged about $1.23 a gallon for regular unleaded, meaning a price increase of 31 cents would be considered proof of gouging. On Tuesday, the average in Mobile was $3.93 per gallon, so retailers could have raised the price to $4.91 gallon without violating the 25 percent threshold. “
http://blog.al.com/live/2008/09/pricegouging_harder_to_fight_i_1.html

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it takes a while for the price to trickle down. these stations have to sell out of the fuel they paid the higher price for first. if the next load is cheaper they will lower their price.

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Oil fell to $91.00 a barrell today. Therefore I ask, Why did I $91.00 for a tank this morning? Greed is the only logical explianation I can muster.

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