Are motorists getting gouged on gas prices?

Posted on Monday, September 15, 2008 11:01 AM ET

By Jim Popkin, NBC News Senior Investigative Producer

There's evidence of possible price gouging at gas stations in Florida, and lawmakers across the South today are on the lookout for other examples of unwarranted price increases in the wake of Hurricane Ike. Some states are even asking consumers to use their cell phones to take pictures of gas-station price signs, to document alleged greed.

In Florida, Attorney General Bill McCollum today is serving subpoenas to four companies, seeking information about reported gas-price gouging. The state has received more than 350 complaints.  "We will not tolerate gouging for greed," McCollum said. Florida is serving the subpoenas to the corporate offices of Flying J, Dodge's Gas Stores, Valero and Pilot Travel Centers.

So far, a Florida official says the highest report of gouging was $5.50 for a gallon of regular unleaded. At another fuel station in Miami, the price Saturday was $4.87 for regular unleaded and $5.09 for premium, the Miami Herald reported. Most South Florida stations are selling gas for under $4 a gallon.

In Texas, Oklahoma, Louisiana, Arkansas, Mississippi and North Carolina, state lawmakers are all on the lookout for gouging.
 
--In Arkansas, state Attorney General Dustin McDaniel said his office has received numerous complaints about possible gouging. McDaniel urged state residents to send him photos--by email or cell phone--of gas-station signs showing exorbitant gasoline prices.

--Louisiana is soliciting cell-phone photos of high gas prices, too. As of Friday, the state had received more than 1,000 complaints of potential price gouging after Hurricanes Gustav Ike, a state official said.

--In Mississippi, the state reports a "flurry of calls" regarding increased gas prices. "Many people are concerned that they are hearing that the price of crude oil is falling and yet their gas prices are rising at the pump," state Attorney General Jim Hood said. But Hood cautioned that, under Mississippi law, merchants are allowed to increase their prices after an emergency if they have incurred additional costs in bringing that product to the public. "If a gas station owner was making 10 cents a gallon before the state of emergency was declared, he may continue to do so. If the cost of obtaining gas goes up by 50 cents, the price may be increased 50 cents, so long as the owner does not make more than 10 cents a gallon above his costs," Hood said.

--In Texas, Attorney General Greg Abbott recently charged an Edinburg, TX, motel operator with price gouging. The state claimed that the owner of a Comfort Inn doubled prices after Hurricane Dolly. The AG found that the motel charged $149.99 for rooms, instead of the usual $79.99.

--In Oklahoma, Attorney General Drew Edmondson warned businesses not to price gouge in the wake of Hurricane Ike. According to state law, prices cannot increase more than 10 percent above the price charged immediately prior to an emergency declaration (unless the increase does not include any rise in profit to the seller.) In May, Oklahoma announced a settlement with the LaQuinta hotel chain that required the company to provide refunds and free room vouchers for consumers who overpaid for rooms during the December ice storm.

--And in North Carolina, Gov. Mike Easley declared a state of "abnormal market disruption" on Friday, and directed the state Attorney General to enforce the price gouging statute. "As a result of Hurricanes Gustav and Ike, oil refineries in Texas and Louisiana have temporarily interrupted some gasoline supplies to the pipelines that serve North Carolina. Therefore, there may be temporary limitations on our gas supply. However, wholesale gas prices are up less than 20 cents a gallon over the last few days. Therefore, consumers should not see prices rise substantially more than this rise in the wholesale price," the governor said.

Comments

How about  $ 4.83 a Gal. in Clarkesville, Ga.
At Ingles supermarket.  On 9-15-08 Monday AM.
In Tennessee the price has went up to $4.98 in very rural areas and some of the stations are out of gas but that's mostly because of the people who were lined up filling up every car they own plus 5 or more gas jugs. If the price of gas is going up because of a shortage shouldn't these people get the same punishment as the price gouging gas stations? If there is a temporary shortage then there should be a temporary limit to the amount of gas you can buy. Also has anyone else heard about Saudia Arabia pulling away from opec? Think maybe this whole hurricane business is maybe a coverup for something else? Oh no that can't be right our government would never cover something up like that!
Belmont, MS station went from $3.59 as lines to formed to $4.29.  As soon as the station ran out of gas, they decreased the signs back to $3.79 to be competitive with the other station.  Funny thing, they were out of gas at this point.
Gas price gouging? Absolutely! I watched the price at one station in Montgomery County, NC go from $3.66 on Wednesday to $3.90 late Thursday afternoon. Then up to $4.06 Friday morning at 9:00, $4.15 at 11:00 am, and $4.69 at 1:00 pm. That's a $1.03 gouging hike from Wednesday to Friday, and $.63 gouging in just four hours on Friday.

It's called Republican greed, plain and simple. Wake up, America, you are letting all this happen to you. Only you, the people can put a stop to this. Why are you waiting?
Gas prices today in our small suburb of Atlanta, Senoia, Ga was listed at $4.69 a gallon for regular gas. The station down the street was listed for $4.19. Many stations are out of regular gas. The disparity between gas stations is incredible.
If the gas is cheaper across the road than go there. duh  I don't like the high gas prices either but what are you going to do, is this a free enterprise system or are we a socialist country.  If you want a socialist country where the government is in charge of everything, move.
I like it here take the good with the bad.  People come to this country every day because it is a place where you can live the dream.  Go somewhere else for a while and come back you will see I am right.
It's simple, just buy a gas station and join the rest of the greedy BasXXXXX. This is just another example of how some Americans could care less about helping each other.
I filled up my truck Thursday for $3.62 per gal. regular unleaded and the same station was selling the same gas at $4.19 per gallon an increase of $.57 more on Friday less than 24 hours later.
In Knoxville, TN gas is sitting pretty at $4.99 a gallon...up over a dollar since Friday.  On Friday, the media created a panic in the area and there wasn't a drop of regular or medium grade gas to be found anywhere.  I had to use premium at over $5 a gallon.  I wouldn't have even gotten gas that day but I was on E.  The gas stations said no gas would be delivered until late this week.  I had to put gas in on Sunday and wouldn't you just know that there was regular?  They told everyone to hurry up because gas would be $7 a gallon next month.
I am usually the person that never complains about gas prices--there's nothing we can do.  But this was just pure crap--they wanted to worry people to hike the prices up--prices were literally going up as people were pumping.  It's ridiculous.
I beleive that as long as our goverment has stock in the oil compines then we the people will pay what ever they want to charge as and there's nothing we the people can do about it. We the people should make it a law that as long as your are in politics you can not have stock in anything you vote on to make law.
I own a hotel in Texas. I understand the rules of supply and demand and the travel industry lives by this rule. However, during times of need, I believe its our obligation to provide for fellow citizens at fair prices. In the hotel industry, we do this by allowing a discount to people that can prove they are from a disaster area (State Photo ID). If they can't prove that they're from those areas they must pay the higher prices. By doing this, you don't take advantage of those in need, but the same rule of supply and demand apply to those that are still traveling to the area. Yes, it sucks for them to pay higher prices but they should have made their reservations ahead of time to avoid last minute price hikes.
I went to work on Friday and gas was 3.69 a gallon. Left to go to work on Saturday and it was 3.89 gal , on the way home from work it was 4.69 gal. That's what I call a GREETY BUNCH of MONEY GRUBBING PIGS. I guess we can thank all the local goverment of all the states that are effected by this and then we can thank that so called PRESIDENT that we have in office. Supply and demand my A**
What bothers us in Michigan has been the high prices which do not reflect what is happening to oil. Now gas is $4.19 a gallon. Here in the Midwest we are asking two questions?

1. Why aren't stations running out of gas?  A lot of us remember the hike in the seventies and stations running out of gas because supply was tight. Not happening this time. Maybe it is profit, not supply that is the driving factor.

2. Why does every station raise their price at the same time? Seems like they are calling eachother and fixing prices, doesn't it?
In a free market there is no such thing as gouging. I'm not a gas station owner but if I were and there was a run on gas, you can better believe that I would raise the price if only to try and keep some gas in my pumps.

Further more if gas stations made as much money as any retail store (Walmart, K-mart, and the mom and pop shop down the street) gas would be $7-8 buck a gallon or more. Since most retailers shoot for a 50 margin everyone that sells anything must be gouging.

Why is it evil when mom and pop Exxon station makes a dollar (instead of 10 cents) on gas but it isn't evil when they make $4 on a pack of batteries Christmas morning when no other store is open.

Given the choice between expensive but available, and cheap but unavailable I will take expensive every day.

For those that don't like this system I suggest moving to China where the price of everything is regulated and see how much fun that is.
Bush said because of the hurracaine the adminstration would be looking for price gouging. Doh! We're already being gouged with a barrel of oil trading under $100 and a gallon of gas over 3 dollars.  
We could cut gas prices, via tax cuts,  if only the government did not give GE a $1.5B+ tax break. They pay a 1%  rate in federal tax i.e. $87 million on $8.7 billion of income. See note ten in annual report.
You folks are getting robbed. The price continues to fall out here in california. It did not budge a bit when the hurricane came through. One station in town dropped it another 6 cents today, to 3.79... and usually we pay more!
Hey Milwaukee,  Decatur has a point.  Around here this week stations ran out of gas and most didn't have any for 2 to 3 days.  that is why everyone bought up gas because we were warned this was coming.  Most of our fuel is trucked up from the coast so seeing the damage and the evacs, it is understandable that we jump out and fill our tanks.  Heck, some gas stations are STILL closed.
Has anybody thought of the impact if Ike had been a catogory 5? We would be paying $10.00 for a gallon of gas for years.
Big oil needs to spend some of their 11 billion a quarter profits and build more refineries on the east coast or away from the gulf coast to keep from getting shut down with one weather occurrence.
No mention of South Carolina where the gas is over $5 in some parts of the state (as a matter of fact the rurual area between Manning and Sumter, the gas there is over $5 for regular). I live in Columbia where there are several gas stations roped off because there is no gas left. There are a few that have regular and I've even seen some that your only option would be premium. I also have a friend that work with Newberry County Public Works, who said that their trucks are parked because there is no gas left. The sheriff deparment had to get the last of that. These days and time suck, but I do hope there is some type of relief and soon!!!
Gas prices actually came down in Canadasince the damage was not extensive, The price here in alabama has risen steadily since Friday from 3.47 to 4.00 in under 10 minutes and it continued to climb through the weekend up to 5.00 at soome pumps until Bush made the statement about Gouging.
Now the prices are bouncing around at 4.20 to 4.40 for regular. There has been another run on the pumps with long waits and the pumps are still open. I just wonder how people can continue to afford the commute to and from work when they are making 8-10 an hour and the drive is 30 miles or more to work .
We are consistenly being gouged, but the government does not care and the gas stations and oil companies love the profits no matter how it affects the average joe.  Until alternate non gas dependant technology is readily available and affordable it will always be this way.  Either that or all the oil in the world will be depleted and that will be that.
The greed of the oil companies is surpassed only by the retailers who gouge American citizens.  Shame on you dirty rotten scoundrels...
"Gas stations should be allowed to charge as high a price as they want even in times of natural disasters.  If prices were higher, there would be adequate local gas supplies.  Almost everyone I know filled up every car and gas can they own this weekend.  If prices were higher, people would only buy the gas they need instead of all they want thus keeping an adequate supply at local gas stations. "

I couldn't have said this better myself.

Gas shortages are much worse than paying an extra $.50/gal for gas and if prices don't go up in the wake (or anticipation) of a disaster like this then shortages are bound to happen. I'm from NC and I'm legitimately worried about all the stations running out of gas (at least 50% are already out and the other 50% have nothing but Premium) around here because they didn't do enough on Friday to keep people from needlessly topping off their tanks.


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Deep Background is NBC News’ investigative blog. It covers national security, terrorism, spies, Iraq, and politics, as well as government waste, fraud and abuse. It is edited by NBC News Senior Investigative Producer Jim Popkin.

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