Gate price gouging

[David]

It's good to know I wasn't imagining this:

Gouging complaints led the supplier to drop from $4.14 to $3.98 a gallon.

Northeast Florida motorists upset at spiking gas prices have directed most of their complaints at Gate Petroleum, according to figures provided Monday by the state Attorney General's Office.

Through Monday morning, the state had fielded 71 complaints about gas prices at stations in Duval, Clay, St. Johns and Nassau counties. Of those, 46 were about Jacksonville-based Gate, which had raised its price for a gallon of regular unleaded to $4.14 a gallon on Sunday.

http://www.jacksonville.com/tu-online/stories/091608/met_332657088.shtml

The Gate on Hendricks just past Emerson had gone up literally 50 cents a gallon overnight. I wasn't getting gas, so I didn't raise any hell about it but it's good to see people are keeping an eye out.

[fsujax]

A shining example of a great local company. I try to avoid Gate as much as possible. They seem to always be high on the price of gas when compared to other stations.

[Doctor_K]

A shining example of a great local company. I try to avoid Gate as much as possible. They seem to always be high on the price of gas when compared to other stations.

Not to defend Gate, but that chain was by far not the only one to hike prices. 

The debate between hedging on future supply versus demand or out-and-out price gouging will undoubtedly rage, but the fact is Gate was not the only one to do this. 

There were reports of gas stations in Tallahassee and in places along the Gulf Coast with $5.00/gallon gas and higher.  I have family in most of the Gulf Coast states that were all complaining about the same thing.

[apvbguy]

gate's response was that it raised prices because it's wholesale costs spiked, ok if that is the case why isn't t the AG going after the wholesaler for gouging?

[Jason]

Good question.  I didn't think the stations could raise prices for gas that they have already purchased from the wholesaler anyways.

[apvbguy]

Good question.  I didn't think the stations could raise prices for gas that they have already purchased from the wholesaler anyways.

anyone can charge whatever they want for their products (as long as there is no collision with others) I saw the gate $4.14 price, and a bit further stations were charging $3.89. nobody is forcing anyone to buy the more expensive fuel. The way to punish price gougers, profiteers is to not buy their product, which appears to have happened, gate dropped their price to a still high $3.98 a gallon.
The bottom line is that the stations jumped real quick to goose the prices higher and the state should investigate, but more than likely they won't go after the real culprits who in my opinion are the marketers/wholesalers (gate is both retailer and marketer) who are the ones jacking the prices up, in many case the guy selling the fuel to you is trapped in the middle.

[Doctor_K]

anyone can charge whatever they want for their products (as long as there is no collision with others) I saw the gate $4.14 price, and a bit further stations were charging $3.89. nobody is forcing anyone to buy the more expensive fuel. The way to punish price gougers, profiteers is to not buy their product, which appears to have happened

True story and good point.  That's why websites like gasbuddy.com and others like it fluorish.  Never hurts to shop around.  Power to the consumer! 

[gatorback]

Good question.  I didn't think the stations could raise prices for gas that they have already purchased from the wholesaler anyways.

anyone can charge whatever they want for their products (as long as there is no collision with others) I saw the gate $4.14 price, and a bit further stations were charging $3.89. nobody is forcing anyone to buy the more expensive fuel. The way to punish price gougers, profiteers is to not buy their product, which appears to have happened, gate dropped their price to a still high $3.98 a gallon.
The bottom line is that the stations jumped real quick to goose the prices higher and the state should investigate, but more than likely they won't go after the real culprits who in my opinion are the marketers/wholesalers (gate is both retailer and marketer) who are the ones jacking the prices up, in many case the guy selling the fuel to you is trapped in the middle.

I'm not sure how it works.  I thought that during a "State of Emergency" that gas price cannot go up...but that doesn't make sense if their cost goes up.  Anybody?

[apvbguy]

Good question.  I didn't think the stations could raise prices for gas that they have already purchased from the wholesaler anyways.

anyone can charge whatever they want for their products (as long as there is no collision with others) I saw the gate $4.14 price, and a bit further stations were charging $3.89. nobody is forcing anyone to buy the more expensive fuel. The way to punish price gougers, profiteers is to not buy their product, which appears to have happened, gate dropped their price to a still high $3.98 a gallon.
The bottom line is that the stations jumped real quick to goose the prices higher and the state should investigate, but more than likely they won't go after the real culprits who in my opinion are the marketers/wholesalers (gate is both retailer and marketer) who are the ones jacking the prices up, in many case the guy selling the fuel to you is trapped in the middle.

I'm not sure how it works.  I thought that during a "State of Emergency" that gas price cannot go up...but that doesn't make sense if their cost goes up.  Anybody?

maybe that is true, but there was no state of emergency here

[Lunican]

Good question.  I didn't think the stations could raise prices for gas that they have already purchased from the wholesaler anyways.

anyone can charge whatever they want for their products (as long as there is no collision with others) I saw the gate $4.14 price, and a bit further stations were charging $3.89. nobody is forcing anyone to buy the more expensive fuel. The way to punish price gougers, profiteers is to not buy their product, which appears to have happened, gate dropped their price to a still high $3.98 a gallon.
The bottom line is that the stations jumped real quick to goose the prices higher and the state should investigate, but more than likely they won't go after the real culprits who in my opinion are the marketers/wholesalers (gate is both retailer and marketer) who are the ones jacking the prices up, in many case the guy selling the fuel to you is trapped in the middle.

I'm not sure how it works.  I thought that during a "State of Emergency" that gas price cannot go up...but that doesn't make sense if their cost goes up.  Anybody?

maybe that is true, but there was no state of emergency here

This info is in the article...

State law makes it illegal for businesses to excessively raise prices on essential items, including gasoline, after an emergency has been declared. Gov. Charlie Crist declared a statewide emergency Aug. 18 as hurricane season intensified. State law doesn't quantify price gouging in dollar terms, but investigators look at prior prices over a 30-day period and decide whether prices are "unconscionable."

Businesses can justify higher prices during a state of emergency if they are paying more for their supplies and are just passing along that cost to consumers.

The Attorney General's Office has issued subpoenas to four companies, requesting information about how they set their gas prices post-Ike. Those companies are Flying J, Dodge's Gas Stores, Valero and Pilot Travel Centers.

[apvbguy]

This info is in the article...

State law makes it illegal for businesses to excessively raise prices on essential items, including gasoline, after an emergency has been declared. Gov. Charlie Crist declared a statewide emergency Aug. 18 as hurricane season intensified. State law doesn't quantify price gouging in dollar terms, but investigators look at prior prices over a 30-day period and decide whether prices are "unconscionable."

Businesses can justify higher prices during a state of emergency if they are paying more for their supplies and are just passing along that cost to consumers.

The Attorney General's Office has issued subpoenas to four companies, requesting information about how they set their gas prices post-Ike. Those companies are Flying J, Dodge's Gas Stores, Valero and Pilot Travel Centers.

[/quote]
august 18 is a long time ago, is that state of emergency still in affect?

[Doctor_K]

august 18 is a long time ago, is that state of emergency still in affect?

Not to be too flippant to the subject at hand, but when was the last time anyone ever heard of a governor, mayor, or even a President saying that a declared state of emergency was 'over'?? 

I want to say that I read somewhere that States of Emergency unless otherwise specifically cancelled expire after two years?  If that's the case, or if it's even close, then technically the declared State of Emergency probably is still nominally in effect.

Alas I don't have a source, so it's suspect info at best.  (shrug)

[apvbguy]

august 18 is a long time ago, is that state of emergency still in affect?

Not to be too flippant to the subject at hand, but when was the last time anyone ever heard of a governor, mayor, or even a President saying that a declared state of emergency was 'over'?? 

I want to say that I read somewhere that States of Emergency unless otherwise specifically cancelled expire after two years?  If that's the case, or if it's even close, then technically the declared State of Emergency probably is still nominally in effect.

Alas I don't have a source, so it's suspect info at best.  (shrug)

I see your point, but from a legal view point there must be an end to the declaration

[Doctor_K]

I'm always a little wary as to stuff in Wikipedia, because anyone can edit it, but at the end of a lengthy section of the article, I found this:

http://en.wikipedia.org/wiki/State_of_emergency#United_States

In 1976, the National Emergencies Act set a limit of two years on emergency declarations unless the president explicitly extends them.

Further:
http://en.wikipedia.org/wiki/National_Emergencies_Act

The National Emergencies Act (50 U.S.C. 1601-1651) is a United States federal law passed in 1976 to stop open-ended states of national emergency and formalize Congressional checks and balances on Presidential emergency powers. The act sets a limit of two years on states of national emergency. It also imposes certain "procedural formalities" on the President when invoking such powers, and provides a means for Congress to countermand a Presidential declaration of emergency and associated use of emergency powers.
...
It was due in part to concern that a declaration of "emergency" for one purpose should not invoke every possible executive emergency power that Congress in 1976 passed the National Emergencies Act. Among other provisions, this act requires the President to declare formally a national emergency and to specify the statutory authorities to be used under such a declaration.

Alas, this just touches on SoE's declared at the National level.  How different the legislation is for SoE's called at the State level is not mentioned.

[BridgeTroll]

US gas prices vs income compared to the world... over time.(1991-2006)  Move time indicator to 1991 then Click play...

http://graphs.gapminder.org/world/#$majorMode=chart$is;shi=t;ly=2003;lb=f;il=t;fs=11;al=30;stl=t;st=t;nsl=t;se=t$wst;tts=C$ts;sp=1.59032258064516;ti=2006$zpv;v=1$inc_x;mmid=XCOORDS;iid=pyj6tScZqmEdz8B4njtoHPA;by=ind$inc_y;mmid=YCOORDS;iid=phAwcNAVuyj1jiMAkmq1iMg;by=ind$inc_s;uniValue=8.21;iid=phAwcNAVuyj0XOoBL%5Fn5tAQ;by=ind$inc_c;uniValue=255;gid=CATID0;by=grp$map_x;scale=lin;dataMin=0;dataMax=1.9$map_y;scale=log;dataMin=83;dataMax=45889$map_s;sma=49;smi=2.65$cd;bd=0$inds=