September 2, 2005
Media Contact: Sandi Copes
Phone: (850) 245-0150
Crist Announces Next Steps in Statewide Investigation Into Skyrocketing Fuel Prices
TALLAHASSEE - Attorney General Charlie Crist today sent teams of investigators and sworn law enforcement personnel from his office to locations throughout Florida, including Miami, Ft. Lauderdale, West Palm Beach, Jacksonville, Ft. Myers, Orlando, Tampa, St. Petersburg, Tallahassee and Pensacola. The teams will be looking into complaints of price gouging on the price of gasoline. Crist said investigators will be looking to determine whether the rapid rise of gas prices meets the legal definition of gouging, and vowed to prosecute any violations of the law.
As of 1:00 p.m. Friday, the Attorney General's toll-free consumer hotline (1-866-9-NO-SCAM, or 1-866-966-7226) had received 1,050 complaints about skyrocketing gas prices in the days since Hurricane Katrina ravaged the Gulf Coast. The investigation seeks to determine whether the increases are caused by legitimate market forces or are instead the result of illegal price gouging.
"When we hear of 75- to 90-cent price spikes within two days, or reports that surcharges are being tacked onto consumers' fuel costs, then it is our duty to investigate," said Crist. "Floridians understood that damage from Hurricane Katrina would lead to some disruptions in fuel supply and some cost increases, but these spikes lead to legitimate questions that must be answered. Gouging will not be tolerated."
Crist has instructed Attorney General personnel to investigate specific complaints and ask the following questions:
1) What was the retail price of gasoline at the station on August 23 (the date before a state of emergency was declared)?
2) When did the retailer purchase the gasoline currently on sale from the distributor, and what retail price was being charged on that date?
3) What is the current sales price today?
4) From whom did the retailer purchase the most recent shipment of fuel that is being sold today?
This information will be used to compile a complete picture of fuel costs that will trace the origins of the rapid increases. If price gouging is found to have occurred, a civil lawsuit can be brought under Florida's Price Gouging Law.
As part of the investigation, the Attorney General subpoenaed two gasoline distributors earlier this week seeking records of their deliveries into Florida. Those companies are Colonial Oil Industries and Murphy Oil USA.
In July, the Attorney General subpoenaed two other gas distributors: Motiva Enterprises (a subsidiary of Royal Dutch Shell) and Tate Oil Company, following Hurricane Dennis.