N.Y. Gas Stations Fined for Price Gouging

By MICHAEL GORMLEY

ALBANY, N.Y. – Fifteen gas stations statewide, including three controlled by oil companies, have been fined $63,500 for marking up profits 25 percent or more after Hurricane Katrina struck the Gulf Coast, state Attorney General Eliot Spitzer said Monday.

Retail prices paid by consumers increased notably after Katrina struck in late August. But Spitzer focused on the markup, or profit, at the pump when it far exceeded the cost of the gasoline paid by the retailer, often in shipments well before the hurricane.

“You cannot under New York law, and you cannot in good conscience, take advantage of an environmental debacle to extract unfair prices,” said Spitzer.

A subsidiary of Getty Oil Co. increased its price at a store east of Binghamton from $2.65 per gallon before Aug. 29 to $3.52 after Aug. 29, when complaints of price gouging began. BP Amoco increased the price at a station in the Bronx from $2.79 per gallon to $3.51 after Aug. 29, Mack said. Lukoil Co., one of Russia’s largest oil producers, increased its price at a Bronx station to $3.49 per gallon, from $2.79.

The companies were fined under the state’s business law, and the fines were civil actions. The attorney general’s office had no jurisdiction to bring criminal charges and there is no specific state crime against price gouging, state Deputy Attorney General Martin Mack said.

Spitzer set the threshold of marking up the profit at 25 percent to capture the most egregious statewide cases. He said the 25 percent point should be drafted into law.

The fines ranged from $2,000 to the maximum $10,000 and were assessed to match the ill-gotten profit, said Spitzer, a Democrat running for governor in 2006.

Spokesmen for Hilltop, BP Amoco and Lukoil didn’t respond to requests for comment.

Other prices were set by regional dealers or gas station owners.

Spitzer said he was “curious” about the potential role of oil companies. While he said there is a potential of price gouging when an oil company controls prices and costs from the oil derrick to the gasoline pump, he noted the industry is complex and he hasn’t drawn any conclusions.

He said he is discussing the findings with other states and said the U.S. Justice Department and Federal Trade Commission should be involved.

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On the Net:

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