With prices at the pump leading to an increase in consumer complaints to the AG's office, Schneiderman said he would compile data on prices being charged in the area and seek to determine the causes behind the recent increase.[image-nocss]
"Drivers across the Southern Tier are getting slammed at the gas pump, and have a right to know not only how gas prices are determined, but whether they're being taken advantage of. On behalf of consumers, my office wants to make sure drivers' hard-earned dollars are protected and that they are being charged fairly at gas stations. While we cannot guarantee that there is wrongdoing behind the high prices, we can assure drivers that we will study the situation to try to determine what is behind these price spikes, and go after any violations if they exist," said Schneiderman.
"We respect the [AG's] interest in reviewing gas prices, but we wonder how objective the inquiry will be if he's accusing us of 'slamming' consumers before the investigation has even begun," said James Calvin, president of the New York Association of Convenience Stores (NYACS). "Our retail members have always been convenient scapegoats for the escalating cost of motor fuel. But the reality is that they have no control over events in the Middle East and on Wall Street that precipitated the surge in wholesale prices they have had to reluctantly pass along in the form of higher prices at the pump."He added, "We empathize with the financial and psychological distress experienced by our gas customers during this period of price volatility. It's no picnic for local retailers either, having to buy motor fuel 10,000 gallons at a time and forfeit more than half of their gross profit margin to Visa or MasterCard just to electronically process purchases made with credit cards."
According to the American Automobile Association, the current average price of regular gasoline in New York State is $3.74 compared to $2.94 at the same time period in 2010. In Binghamton, the current average price is $3.70 compared to $2.94 this time last year. In addition, varying prices can be seen throughout the city of Binghamton.
In an effort to understand the recent retail price increases of gasoline in the area, Schneiderman said his study will focus on how the current market volatility determines the cost of gasoline for retailers and subsequently whether that cost is appropriately passed onto consumers at the pump.
During disruptions in the oil market resulting from civil disorder, war, military action and other abnormal events, gasoline retailers are not allowed to take unfair advantage of consumers by charging grossly excessive prices.
"At a time when the public is very skeptical about what goes on behind the scenes when determining gas prices, it is my responsibility to make sure that everyone involved in setting prices plays by the rules," said Schneiderman.
Calvin said, "If people suspect the seller of any product or service is overcharging, the marketplace has a solution--competition. Whether it's motor fuel, fresh produce or restaurant meals, those who overprice lose business to those who price competitively. Pointing fingers may be a great way for consumers to vent frustration and politicians to make headlines, but the best and simplest recourse for price disparities between gas stations is to just buy from the lower-priced one."
The AG's regional offices will gather pricing data from gasoline station retailers throughout the region, perform its review and release any relevant findings in the coming months, it said.
Headquartered in Albany, NYACS is a not-for-profit trade association representing approximately 5,000 neighborhood convenience stores statewide that sell motor fuel at retail.
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