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Attorney General: State Needs Protection From Price Gouging

Arizona Capitol Reports Staff//September 2, 2005//[read_meter]

Attorney General: State Needs Protection From Price Gouging

Arizona Capitol Reports Staff//September 2, 2005//[read_meter]

Attorney General Terry Goddard has called soaring gasoline prices in Arizona unjustified and said they underscore the need for an anti-gouging law, which the Legislature has twice rejected. Meanwhile, Arizona AAA is suggesting drivers curb their use of gasoline

this holiday weekend and for the weeks to come, as gasoline supplies remain low throughout the country.

“A national tragedy is being exploited by an industry that is already reaping record profits,” Mr. Goddard said in a Sept. 2 press release. “Pump price increases this week of 30 cents or more a gallon in this state are not justified by Hurricane Katrina or the higher cost of crude oil. Gasoline sold in Arizona does not come from the Gulf Coast, and the gas being pumped today was in the pipeline long before the hurricane hit. Consumers deserve more protection from this kind of profiteering.”

Mr. Goddard said he will reintroduce anti-gouging legislation next session. His proposal, which would trigger enforcement if the governor declared an emergency, was turned down in the past two legislative sessions. More than half of the states have price-gouging laws.

“Without an anti-gouging law, Arizona has very limited legal ability to protect consumers from unreasonable increases,” Mr. Goddard said.

Mr. Goddard also announced that he is joining a task force of attorneys general that will explore a multi-state inquiry into the sudden surge

in gas prices.

“Federal officials should be using their legal and persuasive powers to put downward pressure on gas prices,” Mr. Goddard said. “The Energy Department, Federal Trade Commission and other agencies with jurisdiction need to do whatever they can to hold the oil companies, refiners, wholesalers and retailers accountable.”

Meanwhile, Arizonans should curb their use of gasoline now and for the weeks to come, says AAA spokeswoman Yvette Lopez.

“We are urging motorists to cut back on their fuel consumption to prevent further price increases and gasoline shortages,” she said in a statement released Sept. 2.

“While Arizona has no widespread shortages, a run up in demand over the holiday weekend could create some unnecessary pressure on existing supplies and further spike up prices.”

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