Log In


Reset Password
  • MENU
    State
    Friday, November 15, 2024

    Connecticut eyes price gouging as oil prices soar

    In this Thursday, Aug. 20, 2020, file photo, Connecticut Attorney General William Tong speaks to the media during a watch party for the Democratic National Convention at Dunkin' Donuts Park, home of the minor league baseball team the Hartford Yard Goats in Hartford, Conn. (AP Photo/Jessica Hill, File)

    Connecticut Attorney General William Tong warned motorists Monday to be aware of price gouging as gasoline prices surge following Russia’s attack on Ukraine nearly two weeks ago.

    An “abnormal market disruption” in gasoline prices will trigger additional consumer protections against price gouging through April 2, he said.

    During an abnormal market disruption, it is illegal to charge an “unconscionably excessive price” for energy resources that include gasoline, electricity and home heating oil. Such a price is charged in a “gross disparity” between the price during the market disruption and in the ordinary course of business immediately before the market disruption and the price is not due to additional costs, Tong said.

    State law requires the Department of Energy and Environmental Protection to monitor the wholesale price of gasoline in the Hartford and New Haven areas. When the wholesale price of gasoline is over $3 a gallon and the daily price change is over 15% when compared with any of the last 90 days, DEEP is required to notify the attorney general and Department of Consumer Protection of an “abnormal market disruption.”

    DEEP reported on March 2 that the wholesale price of gasoline monitored in the New Haven area was $3.06, 36.6% more than the $2.24 wholesale price of gas as of Dec. 3, 2021. The price has since passed the $4 mark in Connecticut.

    The price reached $4.06 a gallon on average in the U.S., a first since July 2008, according to the AAA.

    Connecticut crossed the $4 threshold on Saturday, settling Monday at $4.28, an increase of 7 cents overnight, up 56 cents in the last week and 71 cents in the last month, AAA said. The price Monday is $1.49 higher than a year ago but is 11 cents short of the previous record high of $4.39 on July 9, 2008.

    The global supply chain is still recovering from the pandemic and continued driver shortages. It’s now been affected by the Russian invasion of Ukraine that could likely add to surging costs, prolonged deliveries and other challenges, AAA said.

    DEEP has notified the attorney general’s office of an abnormal market disruption that triggers additional consumer protections, Tong said. Overcharging consumers is unacceptable at any time and is illegal during an abnormal market disruption, he said.

    “While consumers can expect gas prices to fluctuate more than usual at this time, any unconsciously high increase could be a sign of price gouging, which is illegal,” said Consumer Protection Commissioner Michelle H. Seagull.

    Acting in coordination with the Department of Consumer Protection, the Office of the Attorney General may file suit against price gougers and seek appropriate relief, including injunctive terms, restraining orders, restitution and civil financial penalties.

    “Gas prices fluctuate constantly, and price changes and price increases are normal,” Tong said in a news release. “But what we have seen this past week is not typical, and we can expect even more volatility due to the unprovoked and unconscionable Russian invasion of Ukraine.”

    Russia is a major energy exporter and its invasion of neighboring Ukraine rattled global markets. Oil surged overnight to $130 a barrel, the highest in 13 years, but later fell to $116.

    Anyone who suspects price gouging should file a complaint with the attorney general at https://www.dir.ct.gov/ag/complaint/. If consumers are unable to file a complaint online or via email, they can call the attorney general’s office at (860) 808-5318.

    Comment threads are monitored for 48 hours after publication and then closed.