Three gas stations sued for price gouging

By The Associated Press

Monday, April 24, 2006 10:51 AM EDT

ALBANY - Three gas stations across the state are accused of jacking up the cost of a typical fill-up from $2 to $13 immediately after Hurricane Katrina.
State Attorney General Eliot Spitzer is suing the Penn-Can Truck Stop Mobil in Central Square, Oswego County; My Service Station in New Rochelle, Westchester County; and Schaghticoke Mobil in Rensselaer County.

The stations were notified of the civil lawsuits beginning Friday.

If found liable, the stations could face penalties based on excess profits.

Spitzer said the stations increased their at-the-pump prices by 25 percent to 72 percent for gas already in their holding facilities.

He said the Oswego station increased the pump price by 19 cents per gallon, the Westchester station increased its price by 32 cents; and the Rensselaer County station increased its price by 90 cents per gallon

My Service Station owner/manager Danny Chianciulli denied any price gouging. He said he only raised prices when his supplier raised its prices. His attorney, Adam Peska, said the oil companies and wholesalers were gouging, not the smaller retailers.

Peska said his client had to “increase prices considerably” to cover the cost of his next delivery and lost money in the days following Katrina.

State law prohibits the sale of “vital consumer goods” at an “unconscionably excessive price during natural disasters,” according to Spitzer spokesman Paul Larrabee.

The lawsuits announced this week follows Spitzer's action in December in which 15 gas stations statewide, including three controlled by oil companies, were fined $63,000 for marking up profits 25 percent or more immediately after the Hurricane ravaged the Gulf Coast in late August.

Spitzer said the post-Katrina price jumps were the largest in history for gasoline.

“We continue to believe that the state needs a clearer and stronger statute to deter price gouging,” Spitzer said.

The Citizens' Say

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There are 5 comment(s)

LF wrote on Apr 25, 2006 6:44 AM:

" Ithaca NY- Mobile Station on Triphammer Road- (by Mall enterance) $3.15 Downtown Citgo $3.09 $3.15 is THE highest, I have seen in the Western Finger Lakes. (and wasn't it the Mobile CEOS that got the 3.9 Million $$ retirement packages?) Sickening..... "

RJG wrote on Apr 24, 2006 11:05 PM:

" Boy, I live across from a Mobil station and I know that there isn't 20 cars all day buying gas there. I talked to the worker there and she told me that they think people are boycotting them and I'm hear to tell you people sure are.It's working. Hope it helps "

JE wrote on Apr 24, 2006 1:25 PM:

" What's up with the multiple price increases in the same day? These gas stations full their tanks with gas at $2.48 a gal. and then boost the sales price of the gas in the ground to $3.00 a gal before they have to buy at that price. I've seen the Mobil Station at the Circle change their prices 4 times in 2 days. I can't believe he's having to pay those increases. He's not filling his storage tanks that often. Maybe we should boycott Mobil and Exxon and see what it does to these profit hogs! "

BC wrote on Apr 24, 2006 11:51 AM:

" What is happening with the raise in gas and home heating fuel is hurting everyone. Our government must stop this. But then again, our own President is an oil man. Need we say anymore. "

LE wrote on Apr 24, 2006 11:29 AM:

" Someone should check out the Mobil at the circle on the lake too right here in Auburn. He is well above anyone else and I was told his office in E Syr sets the prices, although they do that in Syr as well for the other Mobils and he is still well above them. Must be that new remodeling job he has to recoup from a couple years ago? "

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