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Gas gougers strike after terrorists
By Andrew Haeg, Minnesota Public Radio
September 12, 2001
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Commerce Commissioner Jim Bernstein visited gas stations, asking them to reduce their prices. But he reported a mixed success. "One of them said, 'we're going to review the situation.' Another said, 'as long as people are going to pay me $4 a gallon, I'm going to charge $4 a gallon,'" according to Bernstein.
(MPR Photo/Laura McCallum)
 
The terrorist attacks in New York and Washington have raised concerns about gasoline supplies. In the hours after the attacks, motorists lined up at some service stations around Minnesota, hoping to fill their tanks before prices rose too high. Some stations raised prices as their supplies ran out, leading motorists and politicians to decry price gouging at a time of national crisis.

GOVERNMENT OFFICIALS THROUGHOUT THE STATE moved to calm Minnesotans' fears over gasoline prices. Attorney General Mike Hatch announced that he plans to publicly shame gas stations thought to be price gouging.

Elsewhere, Commerce Commissioner Jim Bernstein visited gas stations, asking them to reduce their prices. But he reported a mixed success. "One of them said, 'we're going to review the situation.' Another said, 'as long as people are going to pay me $4 a gallon, I'm going to charge $4 a gallon,'" according to Bernstein.

Government officials are urging gas-station owners not to take advantage of the situation, but, as Bernstein noted, there are no laws against raising gas prices. "The state does not control the price of gasoline," he said. "We have no mechanism for doing that and I don't think that we should. We as consumers don't have to take responsibility for what has happened. There is plenty of gasoline. There is no reason to be spending $4, $5 a gallon for gasoline. There's no reason to be lining up and waiting for gasoline. The stocks are adequate. In fact, there's a surplus right now."

The scene Tuesday night at gas stations around the state was reminiscent of the OPEC oil embargo of the 1970s. Motorists lined up, sometimes for blocks. Some drivers paid $3, $4 and $5 a gallon. Some horded gas. A few drivers in St. Cloud were seen filling up trash cans.

But industry observers say, at least for now, the rush to filling stations is unwarranted. After rising Tuesday, the state AAA says gas prices fell by two-and-a-half cents to an average of roughly $1.74 statewide. AAA of Minneapolis spokesperson Dawn Duffy says, there's no cause for panic, and she urged motorists to vote with their wallets for those service stations that are exercising restraint.

"There is no problem with distribution. There is no problem with supply. They're businesses and they can charge whatever gas prices that they want. However, we're consumers and we can go to whichever station that we want," Duffy said.

Duffy says the highest confirmed report was $5.38 at a station in Burnsville.

HIGHWAY ROBBERY?
See a listing of current gas prices around the Twin Cities at twincitiesgasprices.com.
 
Tuesday night, a Fleet Farm gas station in Oakdale advertised gas for $6 a gallon. But the company says no fuel was sold at that price. Spokesman Kurt Van Hout says the posting was not approved by the company, and that it's Fleet Farm's policy to sell gas at the lowest possible prices.

"It was not done in any manner to make a profit at all. It was just an unauthorized posting. We don't know what the thought process was at this point," he said.

Regardless, reports of price gouging at area pumps galled motorists like Todd Faust of Oakdale, who was filling his car at the Fleet Farm Gasmart in Oakdale. "I just think it's awful," he said. "I think they're taking advantage of a bad situation. I don't know if it's these people (the dealers) for sure, but corporate people are taking advantage; all summer they've been doing that."

Faust said he thought government has to do what it can to make sure prices don't spike.

Some gas suppliers said the main danger was that consumer fears could lead to shortages, and that could lead to higher prices. "We understand that there is going to be a substantial demand for fuel because of the rush of Tuesday," said Fleet Farm's Kurt Van Hout. "So there may be some delays on obtaining fuel throughout the Midwest and maybe countrywide. We also did hear that there may be a slight increase in price, but nothing major."

But other reports, including one from the American Petroleum Institute, says supplies are stable and fuel is flowing normally to wholesale and retail markets. The AAA says demand for gas typically falls in autumn, with the end of the travel season, and that should help hold prices down.