p***@ix.netcom.com
2005-09-02 03:22:18 UTC
Thousands Complain to Feds on Gas Gouging
Sep 01 7:52 PM US/Eastern
By H. JOSEF HEBERT
Associated Press Writer
WASHINGTON
Soaring gasoline costs prompted thousands of complaints
Thursday to federal officials about alleged price gouging and
demands by some members of Congress for an investigation into
gasoline markets.
The Energy Department reported more than 5,000 calls to its
price gouging hotline from motorists around the country,
although officials emphasized there was no way to immediately
determine how many of the allegations were valid.
Department spokesman Drew Malcolm said the reports were being
turned over to the Federal Trade Commission.
The states with the most complaints were North Carolina,
Georgia, New York, Pennsylvania, Texas, Illinois, Tennessee,
New Jersey, Michigan and South Carolina.
Meanwhile, attorney's general from a number of states held
a telephone strategy session to discuss the rapidly escalating
gas prices and possible investigations into gouging. Prosecution
for price gouging is generally a state matter unless it involves
some form of collusion or other activity in violation of
federal antitrust laws.
Gas prices jumped 35 cents to 50 cents a gallon overnight in
some areas pushing to well over $3 a gallon after Hurricane
Katrina shut down nine Gulf Coast refineries, disrupted
gasoline pipelines to the Midwest and East and stopped 90
percent of the oil production in the Gulf of Mexico.
"If we get consumer complaints about (gasoline) prices,
we'll look at those complaints to find evidence of
anticompetitive conduct," said John Seesel, the FTC's
associate counsel for energy issues.
But Seesel said the FTC has no jurisdiction over an
individual gas station operator raising his price, no
matter how high, unless there is some collusion among
retailers. A number of states, however, have anti-gouging
statutes. Following FTC policy, he declined to say whether
any investigation were underway.
On Thursday, Attorney General Troy King of Alabama initiated
a private telephone conference with a number of his colleagues
from others states to discuss strategy in response to the
rising gas prices and reports of huge overnight spikes by
some gasoline retailers. No details about the private
discussion were available.
There have been isolated cases of unusually huge price jumps,
including a gas station in Georgia that briefly charged $6 a
gallon when competitors ran out of gas. In Michigan, there
was a price jump of nearly $1 a gallon overnight, although
prices then receded, according to Rep. Fred Upton, R-Mich.,
who drove around his district on Thursday to gauge prices.
"Prices are averaging $3.19. It's as high as $3.58 from
$2.61 on Tuesday," said Upton in a telephone interview.
"My sense is the supply and demand equation does not fit a
60-cent (a gallon) increase in the last 36 hours."
"In Illinois, prices are reported to have shot up 50 cents
per gallon overnight and the state attorney general received
more than 500 reports of price gouging," nine Democratic
members of the House Judiciary Committee wrote the FTC, asking
the agency to step up its review of gas markets.
"These increases go far beyond anything justified or relating
to the market disruptions caused by Hurricane Katrina," wrote
Rep. John Conyers of Michigan, the committee's ranking Democrat,
and the other members.
http://www.breitbart.com/news/2005/09/01/D8CBP7TO8.html
____
Energy Department: http://www.doe.gov
Sep 01 7:52 PM US/Eastern
By H. JOSEF HEBERT
Associated Press Writer
WASHINGTON
Soaring gasoline costs prompted thousands of complaints
Thursday to federal officials about alleged price gouging and
demands by some members of Congress for an investigation into
gasoline markets.
The Energy Department reported more than 5,000 calls to its
price gouging hotline from motorists around the country,
although officials emphasized there was no way to immediately
determine how many of the allegations were valid.
Department spokesman Drew Malcolm said the reports were being
turned over to the Federal Trade Commission.
The states with the most complaints were North Carolina,
Georgia, New York, Pennsylvania, Texas, Illinois, Tennessee,
New Jersey, Michigan and South Carolina.
Meanwhile, attorney's general from a number of states held
a telephone strategy session to discuss the rapidly escalating
gas prices and possible investigations into gouging. Prosecution
for price gouging is generally a state matter unless it involves
some form of collusion or other activity in violation of
federal antitrust laws.
Gas prices jumped 35 cents to 50 cents a gallon overnight in
some areas pushing to well over $3 a gallon after Hurricane
Katrina shut down nine Gulf Coast refineries, disrupted
gasoline pipelines to the Midwest and East and stopped 90
percent of the oil production in the Gulf of Mexico.
"If we get consumer complaints about (gasoline) prices,
we'll look at those complaints to find evidence of
anticompetitive conduct," said John Seesel, the FTC's
associate counsel for energy issues.
But Seesel said the FTC has no jurisdiction over an
individual gas station operator raising his price, no
matter how high, unless there is some collusion among
retailers. A number of states, however, have anti-gouging
statutes. Following FTC policy, he declined to say whether
any investigation were underway.
On Thursday, Attorney General Troy King of Alabama initiated
a private telephone conference with a number of his colleagues
from others states to discuss strategy in response to the
rising gas prices and reports of huge overnight spikes by
some gasoline retailers. No details about the private
discussion were available.
There have been isolated cases of unusually huge price jumps,
including a gas station in Georgia that briefly charged $6 a
gallon when competitors ran out of gas. In Michigan, there
was a price jump of nearly $1 a gallon overnight, although
prices then receded, according to Rep. Fred Upton, R-Mich.,
who drove around his district on Thursday to gauge prices.
"Prices are averaging $3.19. It's as high as $3.58 from
$2.61 on Tuesday," said Upton in a telephone interview.
"My sense is the supply and demand equation does not fit a
60-cent (a gallon) increase in the last 36 hours."
"In Illinois, prices are reported to have shot up 50 cents
per gallon overnight and the state attorney general received
more than 500 reports of price gouging," nine Democratic
members of the House Judiciary Committee wrote the FTC, asking
the agency to step up its review of gas markets.
"These increases go far beyond anything justified or relating
to the market disruptions caused by Hurricane Katrina," wrote
Rep. John Conyers of Michigan, the committee's ranking Democrat,
and the other members.
http://www.breitbart.com/news/2005/09/01/D8CBP7TO8.html
____
Energy Department: http://www.doe.gov