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Spike in gas prices under investigation

The state is investigating whether 22 RaceTrac gas stations, several of them in the Tampa Bay area, illegally raised prices during Hurricane Dennis.

By GRAHAM BRINK
Published July 19, 2005

The Florida Department of Agriculture and Consumer Services issued a subpoena for business records to RaceTrac's corporate headquarters in Atlanta. State investigators will examine the records to determine if the stations engaged in price gouging.

Consumers complained that the stations raised gas prices between 18 cents and 25 cents following Gov. Jeb Bush's declaration of a state emergency on July 7.

"We are not asserting at this point that any of these stations were engaging in price gouging," said department spokesman Terence McElroy. "We need the records to make a determination."

Officials at RaceTrac's corporate headquarters could not be reached for comment. RaceTrac Petroleum, a privately owned company founded in 1934, operates about 525 company-owned and franchised gas stations and convenience stores, including more than 90 in Florida.

The 22 stations under investigation include locations in St. Petersburg, Pinellas Park, Port Richey, Hudson, Brooksville, Seffner and Tampa.

Florida law prohibits charging excessive prices for essential items after an emergency declaration, including gasoline, ice, water, lumber, generators and shelter. Retailers, however, can increase prices to cover legitimate costs.

Investigators will use the subpoenaed records to look at the price the stations were charging before the declaration of a state emergency and the price after the declaration. If the prices increased, they will then consider legitimate reasons why the stations had to raise prices, McElroy said.

For instance, if a station's supplier raised prices on shipments made around the time of the declaration, then the station would be okay in raising the price per gallon to cover that extra cost.

Gas prices have been increasing in the past month for various reasons, McElroy said.

"But if they are increasing the price just for their profits, that would be price gouging," he said.

Violations of Florida's price gouging laws can result in fines of $1,000 per incident or $25,000 per day, McElroy said.

Since Dennis rolled north through the Gulf of Mexico, the Florida Department of Agriculture and Consumer Services Commission has received 1,045 complaints of price gouging. Most of the complaints centered on gas prices.

Last week, the department subpoenaed records from 22 additional stations around the state. In those cases, consumers accused the stations of raising prices by 24 cents or more.

"We will investigate all of the complaints," McElroy said. "We start with the complaints with the most egregious mark ups and work our way down."

--Graham Brink can be reached at 727 893-8406 or brink@sptimes.com

[Last modified July 19, 2005, 01:08:15]