In a letter dated March 11, AG Senior Counsel Stewart Freilich said that between Aug. 15 and Sept. 10, 2008, the price of unleaded gasoline at the station was $3.56 and [image-nocss] substantially increased to $4.09 on September 11 and remained at $3.99 from September 13 to 17. The letter stated that the station's profit margin substantially increased from an average of 13 cents a gallon between August 15 and September 10 to 64 cents per gallon on September 11 to 12 and 54 cents a gallon from September 13 to 17.
In a copy of a letter dated March 25 that was addressed to Freilich, with a copy sent to the Southeast Missourian, Peter Fahey, a manager with Remo 1 LLC, the company that owns Jackson Bait & Tackle, responded:
"The allegations of price gouging are wrong, your interpretation of the information we sent you is wrong and to request money in return for dropping the issue smacks of blackmail and extortion."
"The increase in price was not an attempt to gouge the public. It was a response to the market and an attempt to safeguard our business. As you know, Hurricane Ike came up through the gulf where many of this country's oil refineries are. Damage to those refineries would have cut our supply of gasoline. If we couldn't get gasoline and had no gasoline to sell, our business would have suffered. Se we raised our prices to those of our competition in our area in order to stop a run on our gas."
He concluded, "It is tiring to have to waste our time defending ourselves from a big bureaucratic machine like the [AG's] office.... Shame on you for even sending the letter and threatening a lawsuit.... I am disgusted at your behavior."
A spokesperson with the AG's office said the office would not comment on an ongoing investigation.
Click herefor the AG's letter to Jackson Bait & Tackle.
Andclick here for the full text of Jackson Bait & Tackle's response.
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