RALEIGH, N.C. -- The owners of six North Carolina gas stations have agreed to pay thousands of dollars back to the state and its customers for price gouging, according to the state 's attorney general.
Owners of the Circle B gas station in Fayetteville and five Big D gas stations in Murphy, Marble and Hayesville will repay consumers thousands of dollars for overpriced gas, Attorney General Roy Cooper announced Monday.
“When families are struggling to make ends meet, the last thing they need is to be gouged at the pump,” Cooper said. “These stations are making things [image-nocss] right for consumers and other stations should do the same.”
Cooper also filed suit this week against Steve Compton, owner and manager of Tire Pro, also known as Troy BP, in Troy. The complaint alleges that Tire Pro/Troy BP raised its prices on Sept. 12 to $5.98 per gallon, meaning that its profits rose from approximately 14 cents per gallon of gas sold to at least $2.23 cents per gallon. Cooper is asking the court to order the company to pay refunds to consumers and civil penalties to the state.
Cooper began investigating possible price gouging by North Carolina gas stations after thousands of consumer complaints started pouring into his office on Sept. 12. North Carolina 's law against price gouging was triggered that day by the declaration of an abnormal market disruption due to Hurricane Ike striking the Gulf Coast.
Cooper contends that the Circle B gas station in Fayetteville marked up its prices from $3.99 to $5.49 per gallon on Sept. 12. This means that Circle B overcharged consumers by a total of more than $1,000 between 2 and 7 p.m. that day.
Under an agreement signed by Circle B president Dilip K. Gala, the gas station will refund $1.50 per gallon to consumers who bought gas by credit card during the relevant period. The refunds will appear as credits to consumers ' credit cards. Consumers who paid cash have 30 days to present a receipt or other proof of purchase to the station for a refund. The company will also pay $5,000 in civil penalties to the state, which goes to North Carolina schools.
Cooper contends that the Big D stations overcharged consumers a total of $2,320 on Sept. 12 and 13, marking up gas sold at its stations to $4.99 per gallon.
Under an agreement signed by Big D president Samuel W. Duncan Sr., Big D will refund to consumers who paid by credit card the amount they were overcharged. The exact amount of refunds, which will appear as credits to consumers ' credit cards, will vary depending on which grade of gasoline they purchased and from which Big D gas station. Consumers who paid cash have 30 days to present a receipt or other proof of purchase to the station for a refund. Big D will also pay $10,000 in civil penalties.
Both companies must provide the Attorney General 's Office with a sworn accounting of all refunds they make to consumers. Any amount that is unable to be returned to consumers will go to a special fund to provide energy assistance to people in Cumberland, Cherokee and Clay counties.
Cooper 's office has issued subpoenas to owners of 23 gas stations as part of his investigation, which is continuing.
“We put our price gouging law in place not only to punish wrongdoers, but also to serve as a deterrent,” Cooper said. “Consumers are our eyes and ears out there, and we appreciate their help spotting and reporting possible gouging.”
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