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Gas Price Gouging? You Bet, Hot Line Callers Say

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By NEIL JOHNSON

The Tampa Tribune

Published: September 15, 2008

TAMPA - With complaints of rocketing gas prices burying the state's price-gouging hot line, Attorney General Bill McCollum on Sunday issued subpoenas to four fuel companies that raised prices dramatically in recent days.

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

By Sunday, the state hot line had received 549 complaints that warranted investigation and more that did not.

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

The approaching storm sparked panic buying in Florida as residents stocked up, some fearing rising prices and others anticipating possible shortages. The gas rush emptied supplies at some stations in the Tampa Bay area and across the state.

Art Miller, who lives in the Pasco County community of Darby, was one of those 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 whether steep price increases are justified by increases from suppliers. Company representatives could not be reached for comment.

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

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

It prohibits 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 boosts by suppliers.

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

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

Suppliers could be subject to penalties if they raised prices without justification. The law gives McCollum's office latitude to determine what constitutes price gouging.

"When you see it, you know it," he said.

Although the standard is subjective, jumps of 50 cents or $1 a gallon would qualify.

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

Dropping the price now, though, does not let a company off the hook if the earlier price could not be justified by increased costs.

"If this were a 5- 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 Saturday.

Reporter Neil Johnson can be reached at (813) 259-7731 or njohnson@tampatrib.com.

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