MONTGOMERY, Ala. Alabama Attorney General Troy King has issued a second round of subpoenas in his investigation of why gas prices rose above $3 per gallon after Hurricane Katrina hit Alabama and the Gulf Coast, said the Associated Press.
The first round of subpoenas went to gas stations. The second round includes terminals, wholesalers and refineries owned by major oil companies, King said Wednesday. There will soon be a third round going throughout the chain of production, he said.
King is conducting the investigation with the [image-nocss] help of state Agriculture Commissioner Ron Sparks' staff and several other attorneys general who have started similar inquiries in their states. We're sharing information right now, King said.
Based on the gas station records reviewed so far, Sparks said, I feel very confident that there are going to be some that, in my opinion, are out of line. But he said it is too early to say whether charges of price gouging will result.
Last month, King worked through the National Association of Attorneys General (NAAG) to urge his colleagues to get the answers to why gasoline prices jumped when Hurricane Katrina slammed the Gulf Coast on August 29.
Dean Peeler, executive director of the Alabama Petroleum Council, which represents large oil companies, said prices went up because there was a big demand and a short supply due to damage to refineries and pipelines. Every time this has ever happened, where the federal and state government have alleged price gouging, in the end it has been proven it did not occur at major oil companies, he said.
Last month, King issued subpoenas to 22 stations in 19 Alabama counties and asked them to submit records by September 30. He said one station sought more time, but the others met the deadline.
King said his staff and employees from the state Agriculture Department, who routinely audit stations to make sure their pumps are accurate and that they are paying the correct taxes, are going through the records.
Sparks estimated it will take a month to six weeks to go through the records that have already been subpoenaed.
King declined to speculate on how long the total inquiry will take.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.