On The Alert For Gas-Price Gouging

In the days following Hurricane Katrina, gas prices surged nationwide. In some states, prices spiked almost a dollar a gallon in just one day.

And, reports Susan McGinnis in ConsumerWatch, the pain at the pumps led to suspicions of price-gouging.

Hotlines set up to catch gougers began getting thousands of calls from angry motorists and now, states across the country are taking action.

In Florida, one gas station in Tallahassee was charging $3.19 a gallon when McGinnis stopped in but, the day before, the price was even higher: $3.41.

Too high, asserts state investigator Gerry Lockwood.

"That does concern us," Lockwood says.

He's part of a new team of cops on the lookout for gouging, investigating complaints of suspiciously high prices in the Katrina's wake.

"What is occurring, or what may be occurring, is that a natural disaster is being utilized as a grand excuse to make a terrific profit," charges Florida Attorney General Charlie Crist.

He says the day after Katrina hit Louisiana, gas prices in his state jumped as much as 80 cents a gallon, prompting his price gouging hotline to be flooded with calls. It's logged more than 1,000 consumer complaints so far.

"When people decide to engage in this kind of activity," Crist warns, "the attorney general's office is gonna come after them, and we're gonna stop it, we're gonna nip it in the bud."

Florida is one of 23 states where price gouging is illegal, and punishable by law.Crist's team of 40 investigators is targeting potential gouging at hundreds of gas stations across the state, dropping in unannounced and forcing them to justify their hikes in price.

"We're trying," Lockwood explains, "to find out from the local retailer what they paid for fuel from their supplier. We then contact the supplier, (to learn) what they paid from the refinery. Somewhere in the chain, somebody is making an excess profit."

Drained drivers say the crackdown on gouging can't come soon enough.

"I think they should be punished to the extent of the law," says one. "I mean, why are you taking advantage of people in a situation where it's a state of emergency?"

Says another: "It would be great for this state to be an example to all other states across the country, so I think it's outstanding. I applaud them."

On Friday, Crist sued a Tallahassee gas station, the first gouging lawsuit in the state stemming from Katrina. His office also has issued two subpoenas to gas suppliers for their price records, trying to find out where in the pipeline the possible gouging is springing up.

But McGinnis points out that, while most motorists are quick to blame their local gas stations for the price hikes, they're not always behind the price gouging.

Florida investigators believe that, more often than not, it's the oil suppliers who are illegally raising the cost of fuel, forcing innocent gas station owners to pass along the price hikes.