FRANKFORT — Eight gasoline retailers, including two in Whitley County, will pay the state more than $100,000 to settle charges they engaged in price gouging during Hurricane Ike last September.
Five of the stations are owned by Pilot Travel Centers LLC which is based in Knoxville and serves much of southeastern and southern Kentucky, including three stations located in Corbin, Williamsburg and Middles-boro. Two of the others are T-Mart stations, one in Franklin and the other in Wingo. The eighth station had not yet agreed to a settlement Thursday morning and was not identified by Attorney General Jack Conway whose office conducted the investigation.
Conway began the investigation after Gov. Steve Beshear declared a state of emergency on Sept. 12 as Hurricane Ike buffeted the Gulf Coast and eventually hit parts of Kentucky with damaging, straight-line winds on Sept. 14.
Pilot will pay the state $100,000 in the agreed settlement while the Franklin T-Mart station will pay $5,000 and the Wingo station $2,500.
Conway said the companies “do not admit wrong doing,” but he said the stations engaged in “price gouging,” charging “grossly in excess pricing that existed for six days or more.”
Pilot Travel Centers General Counsel Kristin Seabrook issued a lengthy statement which said Pilot diverted supply trucks to fuel supply locations in Evansville, Ind., Louisville and Lexington when supplies were disrupted at its usual Tennessee locations causing wholesale prices in Tennessee to soar to $4.95 a gallon. The statement said the company’s pricing department failed to account for the difference between the Tennessee wholesale prices and those at Indiana and Kentucky fuel supply points in establishing retail prices.
“Pilot worked with the state to quickly settle the review findings and looks forward to continued service to the residents and travelers in southern Kentucky,” the statement concluded.
Calls to a number listed for the Pilot station in Williamsburg were not answered.
Hurricanes disrupted pipe line service from the gulf to distribution centers from which wholesalers serving Kentucky retail outlets get fuel. But even before the disruption occurred, Kentucky consumers flooded the phone lines of Beshear’s and Conway’s offices on Friday, Sept. 12, complaining about sudden price hikes. At around noon that day, Beshear issued his declaration of emergency under which Kentucky’s price gouging law goes into effect.
By that afternoon, Conway said, his office fielded “thousands of calls” about gas prices spiking dramatically. Culling through 2,000 complaints, the investigators eventually issued 19 subpoenas and after reviewing company cost and pricing data charged the eight stations with price gouging.
An investigation of wholesale prices in Louisville continues, Conway said.
Conway said all but about $30,000 to pay for expenses of the investigation will go to the state’s general fund. He said he thought the settlement amounts were reasonable penalties for the state to collect and sufficient to deter gasoline companies from price gouging.
“If you’re going to gouge, if you are going to engage in this behavior, there is indeed a price to be paid,” Conway said is the message the penalties deliver.
Local News
Gas stations will pay fines to AG
None are in Barren County
- Local News
-
-
To bee or not to bee ... the winner
To use some of the words from Friday morning's Barren County Spelling Bee in a sentence: “Those who reign in the linguistics world urgently and jerkily spelled foreign words with enthusiasm and sometimes their cheeks turned an awful rouge.”
-
3 have new roles at GDT
Three Glasgow natives are settling into new roles within the Glasgow Daily Times.
-
AFTERNOON UPDATE: Police investigate stabbing
4:04 p.m.: A Glasgow man was arrested in connection with a stabbing on East Cherry Street on Friday morning.
-
OBITUARY UPDATE: Audrey Wyatt
Audrey Wyatt - GLASGOW
-
ELLIS UPDATE: Lawmakers closer on new district mapping
Democratic House Speaker Greg Stumbo said Thursday that lawmakers in the Republican Senate and Democratic House are close to an agreement on re-drawing the congressional district map.
- MORNING UPDATE: 911 report
-
Bill would amend absentee voting rules
The filing deadlines for those intending to run for governmental office in 2012 has been extended to Feb. 7, but those who have already filed are gearing up to start campaigning again for votes.
-
Shepherd brings legislature to a stop
Franklin Circuit Judge Phillip Shepherd not only put on hold the filing deadline for candidates for state House and Senate districts — he effectively shut down the business of the General Assembly.
-
Band is ‘Unpredictable’
With The Unpredictables, anything can happen.
- MORNING UPDATE: 911 report
- More Local News Headlines
-






