Immediate Release – September 12, 2001
Office of the Governor
Contact: Terri Giltner (502) 564-2611 or Barbara Hadley Smith (502) 696-5645

Governor and Attorney General Request Monitoring of Gasoline Prices

Governor Paul Patton and Attorney General Ben Chandler request that all gasoline suppliers and retailers not raise their prices in Kentucky in a way that would allow unscrupulous profiteering from our national tragedy.

Price gouging ordinarily involves charging an exorbitant price for a product that is in short supply due to a disaster or emergency.  There is no evidence of any disruption of gasoline supplies, which would justify the high prices being charged.  Furthermore, it appears that the majority of stations have not raised prices and that there continues to be plenty of alternatives for consumers who wish to avoid higher prices.

U.S. Department of Energy officials assured Kentucky’s Natural Resources and Environmental Protection Cabinet today that there have been no reported gasoline supply problems in the country.  Additionally, the American Petroleum Institute issued the following statement:

“We remain confident that fuels are flowing normally to wholesale and retail markets throughout the United States.  Gasoline and diesel fuel inventories are adequate to meet demand and refinery production remains strong.”

“I am outraged to learn that there are those who would take advantage of their fellow citizens during this national emergency,” said Governor Patton.  “This is a time when all citizens of the Commonwealth need to join hands and work together to defend the principles on which our country was built.”

The Attorney General’s investigators have been and will continue to conduct spot checks of prices across the state and will prosecute violations of the state consumer protection laws.

“It is despicable that people would take advantage of the tragedy of the terrorist attacks to make a quick buck, “ said Chandler.  “Currently we have had over 112 reports from across the state of stations that have jacked up their gas prices to as high as $4.00.  Not only are these businesses ripping off their fellow citizens, they are misleading consumers by indicating that supplies of gasoline are going to be unavailable.”

State consumer protection law does not include a specific price gouging law unlike states such as Florida, Georgia and Texas.  However, the Kentucky Consumer Protection Act does prohibit “unfair” acts in trade or commerce.  An act is deemed “unfair” if it is “unconscionable.”  Penalty for willful violation is a $2000 fine per violation.

Richard Maxedon, Executive Director of the Kentucky Petroleum Marketers Association, reports that the overwhelming majority of Kentucky’s independently owned petroleum marketers have not raised prices at the retail gasoline stations they own.  Additionally, Marathon Ashland, which accounts for more than 40% of the supply in the state, rescinded a 12-cent per gallon price increase on unbranded gasoline and a 7-cent increase on branded gasoline that took effect at 2:00 p.m. on September 11.  Marathon has also asked its gasoline retailers to “exercise restraint” during this time of crisis.

“I encourage any Kentuckian who sees gasoline price gouging occurring in their area to immediately contact the Attorney General’s hotline,” stated Governor Patton.

Consumers who know of stations charging prices that are out of line should call the Attorney General’s Consumer Protection Office.  In Louisville, consumers can call (502) 425- 4825.  In the rest of the state, consumers can call (888) 432-9257.

“I want to strongly encourage citizens to avoid those stations that have taken advantage of this national crisis for their own personal gain,” said Chandler.  “Patronize stations that have continued to operate ethically.”

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