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Local Gas Stations Investigated For High Prices

News Channel 8 photo by INDIRA LEVINE

Gas at the Flying J in Dade City has dropped from $4.57 to $3.99 in 24 hours.

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By NEIL JOHNSON | The Tampa Tribune

Published: September 14, 2008

With complaints of skyrocketing gas prices burying the state's price gouging hotline, Attorney General Bill McCollum today issued subpoenas to four fuel companies seeking records to justify dramatic increases over the last four days.

All four companies have outlets in the Tampa Bay area and the state is looking into about 20 complaints from residents in Hillsborough and a similar number from Pinellas, McCollum said during a news conference.

By 5 p.m. today the state hotline had received 549 complaints that warranted investigation with another 88 still to be checked. The hotline received more calls that did not warrant investigation.

Gas prices began ratcheting up when Hurricane Ike threatened the Texas and Louisiana coast and the cluster of oil platforms and refineries that dot the region.

It sparked panic buying in Florida as residents stocked up, some fearing rising prices and others trying to avoid the threat of shortages. The gas rush emptied supplies at some stations in the Tampa Bay area and around the state.

Art Miller who lives in the Pasco County community of Darby was one of the people who registered a complaint with the state.

Regular gas was $3.69 a gallon when he filled his daughter's truck at the Flying J station on State Road 52 Friday afternoon. By 6 a.m. Saturday, the price was $4.57, he said.

"It is really wrong," Miller said.

McCollum's office sent subpoenas to Flying J, Dodge's Stores, Valero and Pilot Travel Centers asking for invoices to see if steep price increases are justified by hikes from suppliers.

Representatives of the companies could not be reached for comment.

Florida's anti price gouging law kicked into effect on Sept. 5 when Gov. Charlie Crist declared a state of emergency from Ike. At the time, forecasts made Florida a likely target for the storm.

And though the hurricane brushed only the Florida Keys, the law remains in effect.

It prohibits businesses from dramatic price increases on necessities based on the average price 30 days before the emergency was declared.

There is no violation of the law if companies can justify increases through hikes by suppliers.

Some investigations in past emergencies showed prices increases were legitimate, McCollum said.

"We want to see if their supplier increased the price and they are passing it along," he said.

However, the suppliers could be subject to penalties if they raised prices without justification.

The law leaves McCollum's office latitude to determine what constitutes gouging.

"When you see it, you know it," he said. It is subjective but jumps of 50 cents or $1 a gallon qualify.

The state has received reports today of some gas stations dropping prices after being called by the attorney general's office, a spokeswoman for McCollum said.

But dropping the price now does not let a company off the hook if the earlier price could not be justified by increased costs.

"If this were a five or 10-cent price increase, I don't think we'd be seeing this many calls," McCollum said.

Even if the investigation shows stations gouged customers, the motorists are probably out the money. McCollum's office cannot get them a refund.

There is no gas shortage in Florida, Crist said on Saturday.

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