HORSLEY, NOWICK INCREASE PENALTIES FOR PRICE GOUGING AT PUMPS
Stern Warning To Gas Retailers & Distributors, “Price Gouging Will Not Be Tolerated”
Horsley Proposal Raises Maximum Penalty From $1,000 To $10,000 Per OffenseHauppauge, New York – Today, Legislators Wayne Horsley (D-Babylon) and Lynne Nowick (R-St. James) issued a stern warning to gasoline retailers and distributors across Long Island by introducing a resolution to raise the penalty for price gouging from $1,000 per offense to a $10,000 per offense maximum. Horsley’s proposal would bring Suffolk County in line with existing state penalties for price gouging, and characterized the measure as a necessary tool for government officials to fight potential price gouging during a time of economic uncertainty, and record breaking gas prices.
Horsley stated, “Today it was reported oil companies earned $14.3 billion in just three months. Enough is enough, we have reached a point where the middle-class, hard-working men and women of Suffolk County are struggling just to survive, and so we will seek to enact this preemptive measure to ward off illegal price manipulation and unwarranted prices increases.”
On Monday oil jumped to a record $119.93 a barrel, and diesel prices reached $4.20 a gallon, on average, compared with $2.93 a gallon last year. Despite a softening global economy energy prices show no signs of slowing, and the price of oil, which has quadrupled in the last five years remains bullish.
Legislator Lynne Nowick, who chairs the Consumer Protection committee stated, “We need to do all that we can to help protect our consumers against these unscrupulous business practices. Through this legislation we can help to ensure that Suffolk County remains tough on those who seek to prey on our county’s consumers during difficult economic times.”
Antoanela Vaccaro, Manager of Government Affairs for AAA New York said: “Enactment of this legislation will send an important message that predatory pricing practices will not be tolerated. In our opinion, increased fines will help deter unscrupulous individuals seeking to profit from the pain drivers are enduring as they struggle to pay skyrocketing pump prices.”
Horsley continued, “By raising the civil fine levied against law breakers we are sending a clear signal that Suffolk County will not tolerate unscrupulous retailers or distributors attempting to game the system during a time of fiscal unrest. And as several requests have been made to the State’s Attorney General to investigate allegations of price gouging by big oil, Suffolk County intends to have a law on the books that will deliver proportionate punishment to purposeful perpetrators at the pump.”
In proposing Suffolk penalties come in line with state price-gouging penalties Horsley cited reports from the Office of Consumer Affairs that since 2006 twenty (20) investigations into price gouging have been conducted. None were convicted of intentional price gouging, however as a result of these investigations sixteen (16) related violations of law, including operating a gasoline retail or distribution center with out registration, were discovered. The resulting black-market sale of gasoline that may have adversely affected competition and harmed consumers at the pumps was thwarted.
Several state lawmakers, citing a lack of faith in the regulatory controls exercised by the Federal government, have also called on the State’s Attorney General to investigate as recently as March 7, 2008.
Today it was also reported that BP and Royal Dutch Shell revealed $14.3 billion in profits for the first three months of this year on the back of rocketing petrol prices. BP’s pre-tax profits rose 48 percent in the first quarter, while Shell increased its profits 12 percent. The price of oil came ever closer to $120 per barrel.
Horsley concluded, “Let me be clear our intent is to deter illegal behavior and demonstrate to big oil that as gasoline prices continue to sky-rocket we will be watching very closely to insure no illegal profit is had at the expense of honest, hard-working consumers.”
2 Comments
September 13, 2008 at 5:34 am
The “price gouging” myth is one of the most pervasive pieces of economic nonsense that I’ve heard. Little wonder that the Stalinist media pushes this class warfare propaganda it every chance it gets.
Likely inundated with complaints by economically ignorant consumers, politicians react to this “threat” of sudden rising prices totally unaware of (or insensitive toward) the damage they’re actually creating. “If sellers don’t raise prices, supplies vanish. Anxious buyers line up and often buy more than they need, just in case. Those not at the front of the line may get nothing. [...] [Y]ou allow people to raise prices — even to “gouge” — because only people who REALLY need them will cough up the money. Gouging also encourages greedy entrepreneurs to rush in with much-needed goods, or to look for more supplies.” Politicians of any party should use their access to the media to educate the public, not prey on their ignorance with phony solutions to a non-existent problem
Ironically the same news station promoting price gouging as fact in the story below, ABC, is the same news station that debunked it in May of 2006.
Gas Price Gouging Hits Hurricane States — Officials Are Instituting Emergency Anti-Price Gouging Laws in Their States by CHARLES HERMAN, ZUNAIRA ZAKI and SCOTT MAYEROWITZ
More on the myth of price gouging below:
Walter E. Williams Explains “Price Gouging” Myth
The Myth of “Price Gouging” by Alex Epstein
Price gouging is myth; market determines what price is fair Matt Hittle
September 13, 2008 at 8:58 pm
Thank you for being on the side of the American people !!
A very sad thing is going to happen. Despite the fact the oil companies are at record profits, you can bet “Ike” will cause an astounding jump in oil prices again. Just when the fuel and money is most needed to aid the people involved in this disaster. Every movement, whether it be a personal vehicle to supplies and rebuilding will be more expensive. Time for the oil companies to really make money… excuse me but this is sinful.
The citizens of the United States are going to be slammed again. No one can tell me when pressure is on for your own monetary survival you are as willing to aid others.
Any politician with his hands in the oil industry should not be allowed to represent the Citizens because he will fail to do so with unbiased judgment – What the United States needs to do is give some astounding tax breaks to new energy research from taxing the profits of the oil industry. Wake up America, there must be some good, honest, citizen oriented politicians out there; let’s support them.