OAK BROOK, Ill. -- While Hurricane Katrina and the resulting high gasoline prices are very much a national issue, most of the efforts to keep those prices to a minimum are being made on the state level. From coast to coast, state governments are keeping eyes open for price gouging while also mulling tax breaks.
Here, CSP Daily News chronicles some of the actions taken in the past week by state officials across the country:
Alabama
Attorney General Troy King eased restrictions that could [image-nocss] otherwise hamper the supply of gasoline and diesel fuels throughout Alabama. The first is a federal regulation involving diesel fuels, which ordinarily are separated into two categories. King has acted to allow suppliers to mix and switch the taxed and untaxed diesel fuel as needed. In a second move, King has temporarily lifted summertime restrictions that are particular to Shelby and Jefferson counties. Through September 7, those counties may use the same gasoline as the rest of the Alabama.
Arizona
Governor Janet Napolitano authorized the distribution and sale of conventional blends of fuel in parts of Arizona that are usually required to sell a cleaner-burning blend of gasoline during the summer months. The waiver means that gas stations in the metro Phoenix area will be able to dispense conventional fuels in addition to Arizona Cleaner Burning Gasoline. The waiver remains in effect until further notice.
Arkansas
State Congressman Mike Ross encouraged the Federal Trade Commission to start an investigation of inflated gasoline prices throughout the country. Ross asked FTC chairperson Deborah Platt Majoras to determine what could be done to ensure that climbing gas prices weren't the result of unfair price gouging.
California
AG Bill Lockyer on Friday launched an investigation into possible illegal profiteering by gasoline retailers and oil companies in the wake of Katrina, announcing he will subpoena records from refiners and probe the pricing practices of gas station owners.
Lockyer's investigation will examine whether oil companies or retailers have colluded to violate antitrust laws, run afoul of state laws that prohibit unfair business practices or violated state law that prohibits retailers from unduly increasing gasoline prices more than 10% during government-declared emergencies.
Also, criticizing oil industry profits, a California lawmaker has introduced legislation to give a state agency broad authority to regulate the cost of fuel. State Senator Joe Dunn (D) introduced a constitutional amendment last week that would allow the state Public Utilities Commission to require mandatory fuel reserves, set profit margins for oil and gas companies, and order the construction of new pipelines. His measure also would forbid agreements between companies that reduce competition. The PUC also could cap prices, but only as a last resort, Dunn said.
Connecticut
Calling the stunning rise in gasoline prices last week "outrageous" and "ludicrous," Gov. M. Jodi Rell said she is considering a temporary suspension of state gasoline taxes to ease the burden on consumers. The tax suspension would save consumers about 25 cents a gallon at the pump.
Georgia
Gov. Sonny Perdue announced Friday that Georgia consumers will be exempt from the state motor fuel tax through the end of September.The governor signed an executive order calling for a temporary moratorium on state collection of all motor fuel taxes, which went into effect Saturday. The moratorium will save consumers more than 15 cents a gallon at the pump.
Illinois
Illinois Attorney General Lisa Madigan warned gas station operators that using Hurricane Katrina as an excuse to inflate gasoline prices could result in fines of $50,000 per violation. She said Thursday that her office had received more than 1,200 price-gouging complaints. Madigan also requested detailed information concerning gasoline supply and pricing decisions from Illinois wholesale gasoline suppliers, including terminals, and a number of retail station owners to help her office monitor gasoline prices with regard to consumer protection and antitrust laws. Madigan also issued emergency rules on Friday barring "unconscionably high" gasoline prices to help prevent price gouging.
The state Department of Agriculture said stations with older pumps that are incapable of computing and displaying prices higher than $2.99 a gallon will be allowed to temporarily post half-gallon prices, rather than force those stations to shut down pending upgrades.
And the Illinois Environmental Protection Agency also said it will allow stations to begin selling winter-grade gasoline early. Summer-blend gasoline normally is required in Illinois from May 1 to September 15.
Iowa
State legislative leaders said last week they were sympathetic to the plight of Iowa drivers and the high gasoline prices they are facing, but it's unlikely they will take any action to suspend or reduce motor fuel taxes. The per-gallon taxes, used to pay for road construction, are 20.7 cents for regular gasoline, 19 cents for ethanol-blended gasoline and 22.5 cents for diesel fuel.
Kansas
State officials said Thursday that there is no evidence that gas stations may be price gouging. "We're keeping an eye on it. We're very watchful," attorney general spokesperson Jan Lunsford told The Wichita Eagle Thursday. Under the Kansas Consumer Protection Act, there is not a violation unless the price of gasoline goes up 2 times during a 24-hour period.
Maine
AG Steven Rowe announced Thursday that his office is monitoring wholesale and retail gasoline prices throughout the state. At the same time, Rep. Tom Allen (D) called for a congressional investigation into whether oil corporations are taking advantage of supply disruptions caused by Katrina. The Governor's Office has received more than 100 phone calls and 60 emails from people complaining about gas and fuel oil prices.
Massachusetts
A Republican state lawmaker's call to temporarily waive the state's gasoline tax created a politically sticky situation last week for Gov. Mitt Romney, who initially dismissed the idea, but later said he ''would be hard-pressed to veto any tax reduction." The House minority leader, Bradley H. Jones Jr. (R), is suggesting waiving the tax through December 31.
Missouri
The executive director of the Missouri Petroleum Marketers and Convenience Store Association joined retailers across the state in denying any gas gouging is going on in Missouri. In response to Gov. Matt Blunt's directive to Attorney General Jay Nixon to investigate allegations of profiteering by Missouri gas merchants, Ronald Leone said those allegations are not true.
Montana
Gov. Brian Schweitzer is criticizing Montana oil refineries, saying some have raised prices for gasoline as much as 50 cents a gallon since Katrina, despite no evidence that their own production costs have risen, said the Associated Press. He said refineries in Montana get most of their crude oil from Alberta, Wyoming and Montana, and the cost of that oil has not risen since Katrina struck. Montana refineries should not be affected by developments in the Gulf, and have no reason to raise prices so dramatically, he said. He called on them to roll back their prices.
Nebraska
Republican gubernatorial candidate Dave Nabity called on the governor to order a special session of the state legislature to cut the fuel tax. Gov. Dave Heineman's spokesperson Aaron Sanderford described Nabity's call for a special session a convenient position for someone outside the situation. As of midday Thursday, the state's AG's office had received 64 emails and 104 phone calls related to the price of fuel and possible gouging.
New Jersey
State Assemblyman Jeff Van Drew (D) is suggesting New Jersey consider legislation that would mirror Hawaii's first-ever state ceiling on gasoline prices. Hawaii's law allows the state's Public Utilities Commission to calculate gasoline price caps by taking a five-day average for gasoline from three mainland markets and then allow charges for shipping and operational costs.
Ohio
As reported in CSP Daily News, state agriculture director Fred Dailey signed an order to allow a small number of Ohio gas pumps to remain open despite their inability to display prices over $2.999 per gallon. The order allows about 150 gas stationsfewer than 3% of the state's totalto display fuel at one-half the actual price as long as they continue to post the full price per gallon on street signs and other forms of advertising.
Oklahoma
Senate president pro tem Mike Morgan (D) proposed Thursday that lawmakers go into special session to suspend gasoline taxes for the last three months of the year to ease skyrocketing prices. Morgan wants to dip into the state's constitutional Rainy Day fund to replace the $103 million it would cost to temporarily eliminate gasoline and diesel taxes. The move would save Oklahomans 17 cents a gallon.
Pennsylvania
Gov. Edward G. Rendell has suspended enforcement of summertime fuel requirements for gasoline refiners, terminals, distributors, carriers and retailers in an effort to ensure adequate fuel supplies in southwestern Pennsylvania. Meanwhile, the state Department of Agriculture has given gasoline retailer temporary permission to post half-gallon prices on their fuel dispensers because some mechanical retail motor fuel dispensers (typically, older dispensers) have restraints on unit price displays and computing of the total price, such that they will not compute prices exceeding $2.999 per gallon.
In a letter to the Pennsylvania Petroleum Marketers & Convenience Store Association, the governor also said: Effective immediately, all retail sellers of gasoline must retain fuel terminal price quotes, delivery invoices and records of retail prices with associated date and time until further notice. These documents are subject to subpoena and audit by state authorities for the purpose of determining if any retailer(s) are engaging in price gouging. Any retailer with an excessive price margin will be subject to possible audit and/or investigation for price gouging or other unfair trade practice.
Wisconsin
Attorney General Peg Lautenschlager pushed Thursday for a new law to ban price gouging in Wisconsin and announced a multi-state investigation into what's behind skyrocketing gasoline prices in the wake of Hurricane Katrina. Gov. Jim Doyle also announced a series of steps he is taking in response to the rising prices.
Those steps include:
Sending a letter to the Environmental Protection Administration (EPA) asking for a waiver of requirements that seven southeastern counties sell specially formulated gasoline to cut air pollution. The blend is typically more expensive than regular gasoline. Establishing a bipartisan task force on energy to find long-term solutions to high costs. Supporting legislation to require gasoline sold in Wisconsin to be 10% ethanol, which is normally cheaper than regular gas. Directing the State Patrol to honor a federal waiver on how much truckers drive to help ensure there are no problems trucking gas into Wisconsin. Directing state agencies to keep close watch on retailers to ensure no one violates state laws at the pump.Wyoming
The state's Joint Interim Revenue Committee killed a proposal to raise the state's gasoline tax from 14 cents per gallon to 19 cents to pay for highway expansion, voting instead to seek the money from the state's general fund.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.