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State Accuses 13 New York Gas Stations of Price-Gouging

By amol on November 15, 2012

Thirteen gas stations in New York City, on Long Island and in Westchester County are being hit with civil price-gouging charges in the wake of Hurricane Sandy, the state attorney general, Eric T. Schneiderman, said.

New York business law defines price-gouging as selling goods for “an unconscionably excessive price” during an “abnormal disruption of the market.”

The stations accusing of price-gouging charged $4.74 to $5.50 a gallon in the days after the storm, according to pricing data confirmed by Mr. Schneiderman’s office. Just before the storm, the average price for gasoline in New York City was about $3.91 a gallon and had not gone above $4.22 this year, according to NewYorkGasPrices.com.

Two USA Petroleum stations on Long Island that charged $5.50 a gallon, according to pricing data confirmed by the attorney general’s office, were the subject of consumer complaints that they charged much more than that, the office said. A consumer reported that the USA Petroleum in East Islip charged $54 for 8 gallons, or $6.75 a gallon, and another consumer said the USA Petroleum on Route 112 in Medford charged her $9 a gallon, the attorney general’s office said.

The list of stations accused of price-gouging also includes a Shell station on Northern Boulevard in Jackson Heights, Queens, accused of charging $5.50 a gallon.

At the height of the gas lines and shortages, drivers frequently complained on Twitter and other social media about exorbitant prices, and Mr. Schneiderman’s office said it had received more than 600 complaints of price-gouging after Hurricane Sandy.

One of the stations accused of price-gouging, a Mobil on Crescent Street in Long Island City, Queens, posted a price per gallon of $3.89 at the roadside, but charged $4.89 a gallon at the pump, Mr. Schneiderman’s office said.

The stations accused of price-gouging will receive letters from Mr. Schneiderman’s office notifying them that a civil proceeding against them is under way and giving them a chance to justify their prices. Eventually, the proceedings could lead to settlements. After Tropical Storm Irene, a Yonkers gas station that had raised its price by 97 cents a gallon agreed to pay a $7,500 penalty, and a station in Farmingdale that had increased its price by 84 cents a gallon paid $3,061, the attorney general’s office said.

“We are taking action to send a message that ripping off New Yorkers is against the law,” Mr. Schneiderman said in a statement.

Posted in Wires | Tagged wires

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