Rise in Gas Prices Raises Price Gouging Concerns Among Public
From: Office of the Attorney General  Filed 9/12/08  GCN

Jackson, MS--The recent rise in gas prices at the pumps has caused a flurry of calls into the Consumer Protection Division of the Office of Attorney General.  Many people are concerned that they are hearing that the price of crude oil is falling and yet their gas prices are rising at the pump.  The Attorney General's Office would like to note that while there is a correlation between the two, there are other considerations in determining gas prices as well, such as the cost associated with refining the oil and transporting the gasoline.  These costs tend to increase during a state of emergency.

Many consumers believe that the price of gas and other goods cannot be raised at all during a state of emergency.   However, under Mississippi law, merchants are allowed to increase their prices if they have incurred additional costs in bringing that product to the public.  If a gas station owner was making 10 cents a gallon before the state of emergency was declared, he may continue to do so.  If the cost of obtaining gas goes up by 50 cents, the price may be increased 50 cents, so long as the owner does not make more than 10 cents a gallon above his costs. 

The Attorney  General's Office is reviewing reports concerning price gouging throughout the state and requiring merchants to provide documentation to justify any increases that have occurred since the Governor declared a State of Emergency for Hurricane Gustav.  

"Based on the investigation of reports we have received thus far, it appears that retailers are in fact incurring increased costs in providing gas to consumers," said Attorney General Jim Hood.  "We will, of course, continue to monitor and follow up on reports we receive." 

In addition, the Federal Trade Commission (FTC)  is currently reviewing the issue of market manipulation in the petroleum industry.  Just yesterday, the FTC extended the public comment period for the proposed rule regarding this issue.  The Attorney General's Office is gathering information and plans to participate in this rule-making process. 
 
"Consumers can rest assured that the Attorney General's Office continues to do what it can to protect consumers during a state of emergency, “said Attorney General Hood. 

Consumers can find out more information on how the price of gas is determined by going to www.agjimhood.com and clicking on the Publications link, scroll towards the bottom and click on the "What Determines the Price I pay for Gasoline?" brochure.