LANSING, Mich. -- Following the unplanned shutdown of a unit at BP's refinery in Whiting, Ind., last week, which caused retail gas price spikes in Michigan, Indiana, Illinois and other states, Michigan Attorney General Bill Schuette has issued a warning to gas stations against price gouging or price fixing.
In addition to this warning, Schuette has also issued a letter to BP as well as other major petroleum companies outlining a need for transparency in the case of an outage or other unexpected event.
“As Labor Day weekend approaches, the effects of an outage at a major Indiana petroleum refinery, combined with additional factors, means Michigan families are seeing an increase in the price at the pump. These circumstances do not constitute a free pass for gas stations to gouge consumers,” said Schuette. “We will not tolerate any unscrupulous behavior that violates Michigan law when it comes to gouging and price fixing.”
The consumer protection team monitors the balance of wholesale and retail petroleum prices and profit margins in regions around Michigan. Additionally, the department receives and reviews consumer complaints and inquiries about individual stations. The department investigates any time there is evidence that state law has been violated for gouging or price fixing.
Under the Michigan Consumer Protection Act, a retailer may not charge a price that is “grossly in excess of the price at which similar property or services are sold.” Anti-trust laws also prohibit gas stations from entering into agreements to arbitrarily fix prices in unison.
The waring and letter follow a request by State Senator John Proos (R) to open an investigation.
“I am calling into question the approximately 80-cent increase in a matter of days that southwest Michigan residents are being forced to pay at the pump,” said Proos, “A single glitch at a regional plant is causing a drastic and sudden increase in gas prices when the 2015 average price of a barrel of crude oil is projected at $49.”
He continued, “As our state continues down the road of an economic comeback, we cannot allow the hard-working people of southwest Michigan to be taken advantage of by artificially high gas prices. For this reason, I am calling on Michigan’s attorney general to investigate the necessity of the price increase on our citizens.”
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.