… but this seems like such BS regarding our local gas shortage??? — much less the price jump of over $1.00per gallon in minutes. There are not people driving around here… no buying gas either. PILOT’s explaination sucks!!!!!!!!!!!!!!!!!!
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Pilot among companies to receive information requests
TOM FOREMAN Jr., Associated Press Writer
Originally published 05:12 p.m., September 14, 2008
Updated 09:18 p.m., September 14, 2008
RALEIGH, N.C. – Attorneys general in Florida and North Carolina are issuing subpoenas to determine if gas stations in their respective states are gouging customers with price increases after Hurricane Ike struck the Texas coast.
And officials in other Southern states activated anti-price gouging laws or warned consumers to be on the lookout for unreasonble gasoline price hikes.
Florida Attorney General Bill McCollum’s office announced Sunday it had issued subpoenas seeking invoices to justify price hikes at three separate chains around the state. Those brands are supplied by independent distributors.
A spokeswoman for North Carolina Attorney General Roy Cooper said subpoenas would be mailed beginning Monday to determine if some stations are engaging in price gouging. His action, which was announced Saturday, followed word from Gov. Mike Easley, who on Friday declared a state of “abnormal market disruption” and signed an order allowing Cooper to enforce North Carolina’s anti-gouging law.
McCollum issued the subpoenas after receiving more than 350 complaints about gasoline price gouging over a four-day period.
“Price gouging is strictly prohibited in Florida during a declared state of emergency and my investigators have been working throughout the weekend to determine whether Floridians are being taken advantage of,” McCollum said in a statement. “Passing along a justifiable increase in cost to consumers is legal, but we will not tolerate gouging for greed.”
The subpoenas were issued to corporate offices of Flying J, Dodge’s Gas Stores, Valero and Pilot Travel Centers. Consumer complaints against the stations were reported to be particularly high in the Tampa region, south and central Florida, and Tallahassee and the Panhandle. The complaints began last Thursday, and officials said they had received 317 complaints about gasoline price gouging related to Ike.
Jimmy Haslam, chief executive of Pilot Travel Centers LLC, based in Knoxville, said in a statement Sunday evening: “Pilot understands the severity of the situation created by the market disruption due to Hurricanes Gustav and Ike. Our priority has been to keep our customers supplied with fuel at prices commensurate with the cost we have paid to acquire the product. Pilot certainly will cooperate with the attorney general’s inquiry into this matter and will provide whatever information necessary.”
McCollum’s office asked that the materials be provided within a week. Service of the subpoenas will begin Monday.
Cooper, who himself fielded complaints from upset consumers on Saturday, said his office would take action if it found any instances of gouging.
“Any station or any wholesaler that’s trying to take advantage of this situation and is gouging consumers will face the music from our office,” Cooper said in an interview with WRAL-TV in Raleigh.
The attorney general’s office will look for “unreasonably excessive” prices, Cooper said. “It’s one of those things where you know it when you see it.”
Spokeswoman Noelle Talley said the consumer protection office had received several hundred telephone calls on Saturday and was still receiving calls on Sunday. She did not have an exact number.
Late Friday, Georgia Gov. Sonny Perdue signed an executive order activating that state’s statute against price gouging that allows prosecution of stations that raise prices excessively. Alabama Gov. Bob Riley declared a state of emergency, activating that state’s price gouging law.
An Alabama law that prohibits “unconscionable pricing” of items for sale or rent goes into effect when the governor has declared a state of emergency.
Mississippi Attorney General Jim Hood said his office was looking into complaints of price gouging after the governor declared a state of emergency for Hurricane Gustav.
In Tennessee, Attorney General Robert Cooper issued a statement on Friday asking residents to be wary of price gougers.
Local gas prices soar
Short supply [?] sends pump prices toward $5 per gallon
By Ed Marcum (Contact)
Saturday, September 13, 2008
Hurricane Ike, which pounded the Texas coast with storm surges and punishing winds overnight, has helped send Knoxville pump prices surging as fuel retailers work feverishly to keep their stores afloat while they search for gasoline supplies anywhere they can find them.
Before Hurricane Gustav ran ashore at New Orleans in recent days, drivers were finally seeing relief at gas stations and convenience stores, with prices retreating from the $4 per gallon level. But they found prices climbing above $4 a gallon Friday, heading toward the $5 mark. Some drivers had trouble even finding gas as stores placed plastic bags over pump handles when they ran out. [remember you just read that sentence...]
The rapid price increases had many consumers complaining about price gouging, a concern that prompted a response from Knoxville-based Pilot Travel Centers LLC, one of the country’s leading retailers of gasoline and diesel fuel, as well as warnings from Tennessee’s attorney general and division of consumer affairs.
Alan Wright, vice president for supply and distribution for Pilot, said during a rare Pilot press conference Friday that economic forces are driving the surge in prices. Some motorists around Knoxville saw prices rise Friday as they were still pumping gas, eliciting gouging complaints.
Wright said Pilot stores were not engaging in such practices. With normal sources of fuel disrupted, Pilot and other retailers are having to search out other suppliers, often at greater cost, he said.
“We are simply responding to market forces,” he said.
He pointed out that fuel prices have been increasing rapidly on the spot market, reaching $5 per gallon in the Gulf Coast area and higher than that in some cities such as Chicago.
Don Lindsey, director of public affairs for AAA East Tennessee, joined Wright at the press conference and said the smaller supply of gas, caused by the disruption from Gustav, is driving up prices.
“What we are going to see over the next few weeks is a wide disparity in prices between stations and locations,” Lindsey said. “If you had a contract to buy gas for say five cents over the base price and you have to go out and hunt for it, you may have to pay more.”
“At least through the end of September and possibly beyond, we can expect price increases,” he added.
Still, Tennessee officials have announced that they will be keeping an eye out for signs of gouging.
“We are taking this very seriously,” Leslie Newman, state Department of Commerce and Insurance commissioner said in a statement.
That department and the state Attorney General’s office are asking consumers who suspect gouging to contact them.
As for fuel availability, Pilot hasn’t run out at any of its stores, but is struggling to make sure supplies remain constant. A fuel shipment from Colonial Pipeline’s main trunk into Knoxville that was originally slated to arrive Saturday, then was postponed until Tuesday, has now been pushed back to Thursday, Wright said.
The problem now is not just less fuel coming from the refineries, but a run on the pumps by drivers, he said.
“The fuel situation for Pilot really hasn’t changed a whole lot since yesterday. We have fuel right now and we continue to deliver fuel to our stores; the problem we have is we are selling about twice as much fuel as we normally would,” he said.
Wright said he anticipated there will be more spikes in fuel prices and short supplies over the next two to three weeks after Ike hits.
Pilot isn’t the only local gasoline retailer watching the fuel situation deteriorate.
“I’ve been in this business 50 years and this has never happened before,” said Bill Weigel, head of the Weigel’s chain of convenience stores in Knox, Blount, Sevier, Loudon, Anderson and Monroe counties.
Weigel, who said Thursday that about a half-dozen Weigel’s stores had run out of gas, declined to say how many more stores had run dry Friday.
“It’s worse today than yesterday, and it will probably be worse tomorrow,” he said Friday.
Weigel and other retailers have been scouring the country for fuel supplies since Gustav left refinery outages along the Gulf Coast, creating severe shortages. With Ike reaching landfall at Galveston and Houston, the heart of the country’s petroleum manufacturing industry, some fear a worst-case scenario for retailers and consumers.
Weigel said Friday afternoon he had found a supply of gasoline in Birmingham, Ala., and was afraid to find out what it was going to cost him. He had to pay $4.49 a gallon for the last batch he bought.
With Ike coming ashore, other Knoxville organizations have prepared or are making preparations to keep essential service providers supplied with fuel.
Randy Kenner, city of Knoxville spokesman, said residents should not see any interruptions in service by the police or fire departments, garbage pick-up or other departments.
“We are in good shape,” Kenner said. “Our fleet service people made a pre-emptive move last week and ordered extra fuel.”
Kenner said this was done in response to Gustav, but the city isn’t worried about disruption from Ike. City fuel reserves are full and “we have another order in already,” he said.
The city has a 20-day supply of gasoline and a 22-day supply of diesel fuel, Kenner said.
Rural Metro also has taken a number of measures, said Dennis Rowe, who represents the ambulance and fire-response service in Knox and Loudon counties. The company has a primary source vendor that assures it can provide an adequate supply of fuel, he said. Most Rural Metro vehicles use diesel, which has not been in as short supply as gasoline, Rowe said. Also, Rural Metro drivers have been issued corporate credit cards that allow them to buy fuel at locations, he said.
However, Rural Metro is prepared to take further measures if needed, such as limiting vehicles’ time on the road, avoiding the use of gas-powered vehicles and others. Rowe said Rural Metro also has an agreement with the Knox County Health Department to use a fuel supplier the health department can provide in an emergency.
KUB also is confident it has sufficient supplies for its fleet, said spokeswoman Pam Jordan.
“But we are asking our employees to eliminate any unnecessary trips in KUB vehicles in order to help with the local fuel situation,” she said.
Drivers feel exasperated by the fuel situation now and may feel even more so in the coming weeks, but Lindsey urged people to keep calm.
“As consumers, there are some things we need to remember. First of all, this is temporary. This is a short-term situation that is going to go away fairly soon,” he said. “Secondly, we can help not have higher prices if we don’t go out and panic buy. If we just buy on our normal need schedule, we can help avoid some of this stuff,” he said.
Business writer Ed Marcum may be reached at 865-342-6267.