Gasoline ‘Price Gougers’

Are Among First To Be Charged

HARTFORD — Attorney General Richard Blumenthal and Department of Consumer Protection (DCP) Commissioner Edwin R. Rodriguez this week announced settlements with four gasoline retailers — potentially the first of several gasoline price gouging cases.

Four gasoline retailers have agreed to make excess profit payments to the state and to comply with laws prohibiting unconscionably excessive prices during abnormal market disruptions — or anticipated disruptions. The retailers, denying wrongdoing, agreed to the settlements after Mr Blumenthal and Mr Rodriguez found evidence of price gouging during the abnormal market conditions related to Hurricane Katrina.

Blue Hills Getty in Bloomfield has agreed to pay $1,591; Opal Ventures V, LLC, doing business as Mobil of Newington, has agreed to pay $5,000; New Milford Hess, LLC of New Milford has agreed to pay $1,800; and Huntington Gulf of Shelton has agreed to pay $4,300.

The AG and consumer protection commissioner had alleged that around August 29, 2005, and continuing for several weeks, the gasoline retailers raised gasoline prices during the abnormal market conditions resulting from Hurricane Katrina. The prices were inflated beyond those attributable additional costs to the retailers, providing excessive profits.

“More than money, what matters is the loud alarm to the industry,” Mr Blumenthal said. “Consider this round one — only the first wave of several possible settlements and legal actions that should send the message that excessive profit taking during market crisis is unacceptable. My office will take appropriate action to impose accountability at every level, from small retailers to big oil companies.”

“The prices charged by these retailers went above and beyond the forces of supply, demand, and capacity; they added greed to the mix,” Mr Rodriguez said. “Exploitation of the gasoline supply disruption caused by the Gulf hurricanes is a prohibited practice. My department will continue to investigate consumer complaints, ensuring that Connecticut consumers are not unfairly charged.”