Attorney general pursues gasoline price gouging

JEFFERSON CITY, Mo. -- Attorney General Jay Nixon is giving owners of gas stations that allegedly gouged customers following last week's terrorist attacks the choice of paying a minimum penalty of $1,000 or face a lawsuit and risk much larger fines.

So far, Nixon's office has sent letters offering the settlement to the owners of 28 gas stations throughout Missouri that are believed to have sold fuel at inflated prices. The investigation continues, and Nixon estimated that as many as 50 station owners could be targeted under Missouri's consumer protection laws.

Nixon acknowledged that some Southeast Missouri stations are among those that allegedly gouged customers. However, he refused to name those stations or even reveal in what counties they are located.

Nixon said doing so could expose the stations to retribution during a time when emotions are running high. The names of the stations will be made public once settlements are made or lawsuits filed.

Ron Leone, executive vice president of the Missouri Petroleum Marketers and Convenience Store Association, said his group supports Nixon's efforts but stressed that only a small fraction of retailers improperly raised prices.

"The vast majority of convenience store owners across the state behaved reasonably and appropriately in a very difficult situation," Leone said.

Within hours of the Sept. 11 terrorists attacks on New York and Washington, sharp jumps in gasoline prices were reported around the state as motorists responded to unfounded rumors of impending fuel shortages by rushing to fill up. Prices quickly returned to normal.

1,000 complaints

Nixon said his office received more than 1,000 phone calls and e-mails reporting price gouging. The most severe, though unconfirmed, report of which he was aware involved a station charging $9.99 a gallon.

"The public outcry against the tactics of these profiteers have helped many stations understand the error of their ways," Nixon said. "However, those who substantially raised prices were in violation of Missouri law. It is my intention to see that they pay penalties for their violations."

Nixon defined illegal price gouging under state regulations as "substantially raising prices in a time of crisis."

The ongoing investigation is targeting stations reported to have raised prices above $2.49 a gallon for any grade of fuel.

Under the terms of the settlement, stations must pay the state $750 or three times the amount of excessive profits made while charging inflated prices, whichever amount is higher. Each station must pay an additional $250 to cover investigative costs.

The stations under investigation have until Oct. 1 to accept the settlement. Nixon promised to sue those who refuse.

If he is forced to resort to litigation, Nixon said he will seek penalties of $1,000 per sale, the maximum allowed under state law.

"Operators who do not agree to the terms of this settlement should be prepared for aggressive litigation efforts on the part of the state," Nixon said.

mpowers@semissourian.com

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