FRANKFORT, Ky. -- Kentucky Attorney General Greg Stumbo said that his Office of Consumer Protection has imposed fines totaling $47,500 on five petroleum retailers following an extensive investigation into allegations of gasoline price gouging.
Stumbo also announced that a lawsuit has been filed against Mar Rob Inc., doing business as Mickey's Fastrac BP in Scottsville, Ky., alleging additional gasoline price gouging violations. The suit seeks a $5,000 penalty per violation plus restitution.
The AG's crackdown will continue with [image-nocss] the subpoena of records from all Speedway gas stations across Kentucky. An investigation into price gouging by refineries is also ongoing.
The investigation into gas 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. This legislation was sponsored by Representative Tommy Thompson (D).
The AG's investigation found that 11 stations excessively increased prices to obtain windfall profits during the state of emergency.
The following petroleum marketers have reached a settlement agreement with the Office of the Attorney General (total settlement amount: $47,500):
Max Arnold & Sons LLC., Hopkinsville, Ky. Excessive gasoline price increases at four locations in Western Kentucky: Hopkinsville, Elkton, Oak Grove and Grand Rivers; $20,000 settlement. Fred's Minit Mart, Bowling Green, Ky. Excessive gasoline price increases at one location in Bowling Green and one in Brownsville; $10,000 settlement. Childers Oil Co., Whitesburg, Ky. Excessive gasoline price increases at two locations in eastern Kentucky: Goody Double Kwik, South Williamson, and Hindman Double Kwik, Hindman; $10,000 settlement. Kentucky Petroleum Supply, doing business as First Class Travel Center. Excessive gasoline price increase at location in Grayson, Ky.; $5,000 settlement. The Commissary Inc. Excessive gasoline price increase at one location in Harlan, Ky.; $2,500 settlement.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.