Attorney General's News Release

October 2, 2001

Nixon announces results of investigation into gas price gouging; 48 gas stations to pay $60,043 total

Jefferson City, Mo. — Forty-eight gasoline retailers from around the state are going to pay $60,043.51 in penalties and costs for violating Missouri's rules and regulations on price gouging in the wake of the Sept. 11 terrorist attacks, Attorney General Jay Nixon announced today.

"Those who used the tragic events of Sept. 11 as an excuse to dramatically increase prices for necessities have discovered that any short-term gain has been quickly negated both by the legal trouble they found themselves in and by the condemnation of public opinion," Nixon said.

Nixon sent demand letters to the stations telling them that if they had raised prices for any grade of gasoline above $2.49 a gallon following the events of Sept. 11, they must pay penalties of triple any gas-gouging profits or $750 — whichever was greater — plus investigative costs of $250, for a minimum total of $1,000. Stations that did not reach an agreement to pay the penalty by Oct. 1 would face lawsuits; all stations that received the demand from Nixon's office and which had raised their pump price above $2.49 a gallon signed agreements to pay the penalties, making the further legal action unnecessary.

"More than a thousand Missourians contacted my office within the first two days to report incidents of gas prices going up right after the terrorist attacks," Nixon said. "Those reports, coupled with expeditious investigative work by my staff, helped pinpoint where price gouging actually occurred and dispel false rumors as well.

"The citizens of Missouri were correct in their outrage, and they acted properly by reporting their observations to our office," Nixon said. "The stations have agreed to pay the penalty and, I believe, have learned from a mistake in judgment."

The penalties will go to the school fund in each county where the stations are located. The agreements, which will be submitted to the circuit courts in the respective counties, also prohibit the stations from further violations of the law.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818