US
gas stations sued amid soaring oil prices
AFP
NEW
YORK
Petroleumworld.com
04 25 06
Anger among US car owners over soaring gasoline pump prices has prompted
stern warnings to service stations over the legal consequences of over-charging
consumers.
New York Attorney General Eliot Spitzer filed lawsuits Monday accusing
three gas stations in the state with charging "unconscionably excessive
prices" in the days following the devastation wreaked by Hurricane
Katrina along the US Gulf Coast last year.
The action was seen as a pre-emptive warning to other gas stations as
global oil prices continue to hit record highs due, in part, to fears
of a possible conflict with Iran.
The average price for a gallon of regular gas in New York City currently
stands at more than three dollars per gallon.
The three stations named in Monday's lawsuits were charged with increasing
their mark-ups on a gallon of gas by between 25 and 72 percent in the
days after Katrina hit late last August.
Spitzer also called upon the Federal Trade Commission (FTC) to "aggressively
pursue" an ongoing investigation of gasoline pricing and market
manipulation.
"It is essential that the FTC focuses not only on the merit of
price gouging statutes that deal with events such as Katrina, but also
on the causes behind the dramatic price increases we're experiencing
all these months later," Spitzer said.
"While we need federal and state price gouging laws to protect
consumers when disaster strikes, we also need to police oil company
behavior during periods of unprecedented prices and profits," he
added.
AFP 04 24 06 1600 GMT
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