News
Gas price investigation continues with subpoenas to wholesalers
By Governor Rell's office
Sep 19, 2008 - 1:27 PM

Governor M. Jodi Rell today announced that the state’s continuing investigation into complaints from consumers about a sudden increase in gas prices has broadened to include 10 wholesalers serving gas stations around Connecticut.

“The pain at the pump is nearly unbearable – and we are going to make sure the only thing fueling these price increases are the natural forces of supply and demand,” Governor Rell said. “It is natural to expect some price spikes because of the double blow that the Texas Gulf Coast refineries took from Hurricane Ike and Hurricane Gustav before it. However, we will not permit anyone to use these natural disasters for profit. Complaints are being checked out in detail and if anyone is found to have taken advantage of our hard-pressed residents they will be punished.”

On Wednesday, Governor Rell directed the Department of Consumer Protection (DCP) to subpoena records from several gasoline companies after the Governor’s Office and the DCP received numerous, specific complaints about a sudden increase in gasoline prices during and following Hurricane Ike. Those subpoenas sought information not only at the retail level but at the wholesale level as well.

The subpoenas were issued after more than 500 consumer complaints to a hot line Governor Rell established for residents to report possible price gouging (800-842-2649). Since then, the Governor’s Office and DCP have received more than 100 additional complaints.

On Thursday, DCP subpoenaed 10 more wholesalers – seven of them based in Connecticut – seeking further information about their pricing during the run-up to the storm and the ensuing days.

“The local retailers – the man and women who own and operate the gas stations we all use – are saying they are squeezed between staggering wholesale prices and fuming customers,” Governor Rell said. “While we will continue to investigate possible wrongdoing at either the retail or the wholesale level, I understand the plight of local gas station owners – consumers face the same grim choices when pinched by high retail prices and the need to keep their cars and trucks on the road.”

Governor Rell has also announced that her Administration is crafting specific language to define “price gouging” and make it easier to investigate and prosecute suspected profiteers. She plans to contact a wide range of experts, including retail-level dealers, to set a firm standard for defining “price gouging,” especially in volatile markets such as retail gasoline. Legislation to revise the standards would be offered when the General Assembly meets next year.

The wholesalers subpoenaed are:

ExxonMobil – Houston, Texas
Alliance Energy – Branford, Conn.
Drake Petroleum – Thompson, Conn.
Aldin Associates – East Hartford, Conn.
Hendel Petroleum – Waterford, Conn.
General Equities – Kensington, Conn.
Chestnut Petroleum – New Paltz, N.Y.
Sunoco – Philadelphia, Pa.
Patterson Oil – Torrington, Conn.
Standard Petroleum – Bridgeport, Conn.

© Copyright by NorwalkPlus.com