Authorities watching gas prices

Published 11:21 pm Monday, September 15, 2008

VALDOSTA — As gas prices soar and citizens perceive local gas and service stations as trying to prey on them in an already struggling economy, local and state government leaders take a stance.

The city of Valdosta’s price gouging ordinance was signed Friday, Sept. 12, by Mayor John Fretti, while Gov. Sonny Purdue signed an executive order for the state’s price gouging statue to protect consumers from unreasonable increases in gas and other prices due to Hurricane Ike.

“Price gouging often accompanies natural disasters when disaster victims have little choice but to buy products and services at exorbitant and unjustifiably increased prices,” said Fretti.

Since the implementation of the state and local ordinances, the lines to report any suspected incidences of price gouging to the Governor’s Office of Consumer Affairs have been constantly busy.

According to City Manager Larry Hanson, the Valdosta Police Department can investigate claims of price gouging and has been in contact with local retailers, delivering letters Friday night and Saturday morning, to make them aware the city had imposed the anti-gouging ordinance.

“Prices in the Valdosta area have apparently yet to stabilize. We are noting prices varying by at least 70 cents per gallon and have also noticed that particular areas of town are apparently reacting to their own neighborhood markets,” said Fretti.

A drive around town revealed that the Interstate 75 areas have one price, the midtown areas have another and the many in the north part of town appear to be the highest by a dramatic amount.

Joyce Smith, manager of Flash Foods #247 located on Bemiss Road, said, “The only thing we’ve received about gas prices comes in the mail, and we have only received notices telling us at what price to sell the gas. We ran out on the first day of the gas price increase and were out over a day, but our gas supplies has been replenished.”

Sonny Patel of Gas-N-Go #914, located on South Patterson, said, “All of our gas selections are well stocked.”

Other stations are not so fortunate.

Monday afternoon, the Enmark station on Park Avenue was roped off in yellow ribbon, while each individual pump handle was covered with an “out-of-service” bag, indicating that all selections of gas were out.

“While there may be a reason for these variances, it certainly feels wrong,” said Fretti. “We have been on the phone with the Governor’s Office of Consumer Affairs most of the afternoon for information regarding consumer complaints.”

According to the Governor’s Office of Consumer Affairs, a consumer does not have to purchase fuel in order to file a complaint. They only have to call and provide the name of the business, the time, date and location of the complaint, and the price of fuel.

The Governor’s Office of Consumer Affairs will then, within minutes, call the alleged offender, put them on notice of the complaint and begin the investigation process. If a consumer wants restitution for the price gouging, they need to fill out a short form for the complaint, and if prosecuted, the consumer may be entitled to monetary restitution.

The fines for price gouging can range from $2,000 to $15,000 per violation.

“The Department of Agriculture is strongly encouraging fuel retailers to remove all prices from their signs in addition to bagging their pump handles when they are out of fuel. Retailers should not advertise a price on a product while knowingly being without that product,” said Fretti.

According to Web sources, the average price in the nation for regular unleaded fuel is $3.839 per gallon.

“A review of local prices late Friday afternoon compared with prices on Saturday and since is being monitored for compliance,” said Hanson, “City officials have issued no citations locally. State law and local ordinances are legally required to allow businesses to pass along increases in the cost of goods and services to them or increases in the cost of transporting goods or services to them.”

“We are encouraging consumers to call … (the Governor’s Office of Consumer Affairs) to begin the process of complaint and investigation,” said Fretti, “The city of Valdosta remains vigilant in assisting our citizens.”

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To file a complaint, please call the Governor’s Office of Consumer Affairs at (404) 651-8600 or (800) 869-1123. More information can be viewed at www.consumer.georgia.gov.

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