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PRESS RELEASE ON GAS PRICES FROM THE NYS CONSUMER PROTECTION BOARD
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As Gas Prices Rise With New Storm Threat, Consumers can Still Report Possible Price Gouging
In an effort to avert possible price gouging, the state is continuing its gasoline price hotline where consumers can report instances of possible price gouging. The Consumer Protection Board (CPB) reminded consumers today.
"Governor Pataki and I want all New Yorkers to know that the state is watching the situation closely and we are asking for everyone's assistance in reporting what they believe to be excessive prices," said Teresa A. Santiago, Chairperson and Executive Director of the CPB.
"Oil prices are rising again following an increase of more than $4 a barrel on Monday -- the largest one-day gain on record. This will likely lead to higher prices at the pump," Chairperson Santiago said. "The increase is due in large part to the weather, as another tropical storm is moving into the Gulf Coast. Prices will fluctuate, but we want to put gas wholesalers and retailers on notice that the state and consumers will be watching for any signs of price gouging related to this storm."
Under the law, gasoline retailers can charge whatever price the market will bear. The state's price gouging law can only be used when a gasoline retailer, distributor or producer raises prices dramatically during a natural disaster. There is no gouging, however, when that natural disaster increases their costs and those additional costs are passed onto consumers in the form of higher pump prices.
Consumers can report excessive gasoline price increases through a toll-free number, 1-800-214-4372 and through the CPB's website, www.nysconsumer.gov. The complaint line is open from 8:30 a.m. to 4:30 p.m. on weekdays, and 10:00 a.m. to 6:00 p.m. on weekends.
"Gasoline wholesale prices in the New York City market increased by 26 cents yesterday (Sept. 19) and the same increase was observed in wholesale markets in Albany," said Chairperson Santiago. "These increases have been attributed to concerns about Hurricane Rita, which may hit oil and gas producing and refining regions of the western Gulf of Mexico."
Twenty-six percent of the nation's refining capacity is located on the Texas and Western Louisiana coasts. As a result, the nation's gasoline capacity could be affected by this new storm as it was with Hurricane Katrina, although the effects will probably not be as long lasting.
"By operating this complaint system, we believe we have created an atmosphere of deterrence throughout the state," said Chairperson Santiago. "The gasoline industry is on notice that the state is watching and that price gouging will not be tolerated."
The CPB has referred nearly 2,000 gas-price complaints collected during the past two weeks to the Attorney General's office for further investigation.
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