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Massachusetts Checks Gas Stations for Evidence of Price-Gouging

Posted on: Sunday, 4 September 2005, 21:00 CDT

Sep. 4--WESTWOOD -- State inspectors fanned out across Massachusetts yesterday checking a few hundred gas stations for any evidence of price gouging.

The cost of fuel appeared to have stabilized, however, after shooting up dramatically in the days after Hurricane Katrina slammed into the Gulf Coast and devastated one of the nation's largest oil-producing regions.

The average price of a gallon of regular unleaded in Massachusetts was $3.23 yesterday, according to the website gasbuddy.com, which relies on volunteers to report prices. That's up only a penny from Friday. A week ago, according to the website, regular unleaded gasoline averaged $2.58 a gallon statewide before Katrina hit.

The state's Office of Consumer Affairs and Business Regulation said it received 331 complaints about price gouging from drivers Friday afternoon and yesterday. The office is staffing its consumer hot line (888-283-3757) from 9 a.m. to 3 p.m. over the weekend to take gas complaints.

Consumers can also fill out a complaint form available on the office's website, www.mass.gov/consumer.

"Some inquiries are just shock and frustration with the prices," said office spokesman Chris Goetcheus. "But we are going to go through all the complaints and forward any that would indicate potential for price gouging to our inspectors."

While gas stations in other states have reported running out of fuel, the supply in Massachusetts appears stable, said Charles Carroll, assistant deputy director of the state Division of Standards.

Customers interviewed at a Shell station in this suburb southwest of Boston after a Division of Standards inspector visited yesterday afternoon expressed outrage at paying more than $3 per gallon.

"It's robbery," said Barbara Maraglia of Brockton, as the meter reached $36.91 for her 11.5-gallon fill-up. "There's no way we should be paying that much money for gas."

Maraglia, on her way home in her 2005 PT Cruiser after helping her daughter move to Bentley College in Waltham, said she has curtailed her driving and is looking to form a carpool.

"Something needs to happen," she said. "I'm not sure what, but I can't see how gas stations can keep increasing their prices. What is justifying the price increase?"

Thomas Hansbury, a state compliance officer who inspected the Shell station yesterday on Route 1, said he understands motorists' aggravation, but he hadn't found any irregularities in the 15 or so stations he'd visited.

"We're making sure it's sold the correct way, that there is not deception in the sale," he said. That includes making sure the price charged at the pump matches the price posted on signs.

Hansbury said the Shell station's price of $3.20 per gallon was among the lower ones he saw yesterday. One station was charging $3.60, he said.

Brent Smith of Quincy stopped by to get $20 worth of gas for his 2002 GMC Jimmy on his way home from work.

"This gas station is the cheapest one I've seen all day and I've driven by six," he said.

The skyrocketing cost of gasoline is forcing some small stations out of business. At least three stations in the Boston area have closed in the past week, including Trojan Gas in Brockton.

Owner Sharon Trojano said the post-hurricane price spike prompted her to shut down the full-service station Friday after 15 years of operation, laying off eight employees. She plans to reopen as a self-service station.

Davis Automotive in Halifax decided to close its full-service station as Katrina began threatening the Gulf Coast. Its four gas pumpers lost their jobs. Owner Stephanie Davis said she hopes to reopen the pumps if prices go down; her repair shop remains open.

Carroll said 10 state inspectors are on duty this weekend plus another eight or so from cities and towns who are helping survey a random sample of the state's 2,600 or so gas retailers. "We're getting a pretty good sample," he said. "It acts as a good deterrent."

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RD, SC, SHEL, DCX, GM,

Source: The Boston Globe

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