FRANKLIN, Ky. -- Kentucky Attorney General Greg Stumbo said his Office of Consumer Protection has imposed a fine of $5,000 against Bluegrass Travel Plaza LLC, Franklin, Ky., to settle price gouging allegations in connection with its sale of gasoline during the state of emergency declared on Aug. 31, 2005.
This agreement represents the 11th gas station that has settled price gouging allegations, bringing to $52,500 the total settlement reached by the Office of Consumer Protection.
Last week, as reported in CSP Daily News, Stumbo [image-nocss] announced settlements with 10 other stations that excessively increased prices to obtain windfall profits during the state of emergency. The office's investigation into gasoline price gouging began after hurricanes Katrina and Rita in the summer of 2005. On Aug. 31, 2005 Stumbo called upon Governor Ernie Fletcher to declare a state of emergency to put the price gouging law, KRS 367.374, into effect.
Under Kentucky's Price Gouging law, passed in 2004, no supplier of an essential consumer product, including gasoline, can sell it for a price grossly in excess of that charged prior to the declaration.
Attorney General Stumbo's crackdown is continuing with the subpoena of records from all Speedway gas stations across Kentucky. This includes a subpoena of records up to and including last week when the state experienced a sudden and unexplained surge in gasoline prices. An investigation into price gouging by refineries is also ongoing.
[Last Thursday's] retail gas prices shot up while wholesale prices fell, said Stumbo. We have sent subpoenas for Speedway stores across Kentucky requiring explanation of this price spike. Speedway is a trendsetter in gas pricing across the Commonwealth.
Speedway's gas prices today are ranging from $2.99 to $3.19 per gallon in Kentucky.
The Office of Consumer Protection is also continuing its examination of wholesale pricing by major petroleum refiners. The root problem of excessive gas pricing is not limited to the retail market, Stumbo said. Price gouging by refiners must be addressed head on.
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