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To make
sure gas stations aren’t taking advantage of the driving public, County
Executive Andy Spano today directed the county’s Department of Consumer
Protection to issue subpoenas to 11 gas stations that had the largest
increase in gasoline prices in the wake of Hurricane Katrina.
“We want
to make sure that these increases are really justified,’’ said County
Executive Andy Spano, who ordered the action last week as part of a series
of measures to relieve the burden on consumers. “It’s bad enough that the
cost of oil is soaring, but if we find that stations are gouging when so
many people are suffering, we will do everything in our power to come down
hard on these people.’’
Elaine Price, director of Consumer Protection, said the 11 subpoenas went
out today to stations whose prices jumped more than 60 cents from Aug.31
to Sept. 1. Gas stations receiving subpoenas have until Monday to produce
records of their gas deliveries that will show how much they paid per
gallon and when. This will help determine whether the increases passed on
to the public are justified. More subpoenas are expected in the next few
days.
At
Spano’s directive, the department did back-to-back surveys Aug. 31 and
Sept. 1 and found the average increase in that 24-hour period was 30
cents. But at some stations, the increase was substantially more. The
most extreme example was Hilltop Service in Shrub Oak, where the price
went from $2.85 to $3.99.
Spano
said the consumer department’s action appears to be producing results
already, with Hilltop Service of Shrub Oak
dropping its price from 3.99/gallon on Sept. 1 to 3.69/gallon the next
day.
According to the last survey done was $3.25 per gallon. That average is
likely to go up when a new survey is released tomorrow on the department’s
website at www.westchestergov.com/consumer, said Price. |
However, crude prices are now stabilizing so consumers should see some
reduction in the near future.
Spano said in addition to cracking down on unscrupulous gas station
owners, he will ask the state to give the county the power to cap the
county portion of the sales tax levy on gasoline. He is also calling upon
the state to cap its portion of the sales tax and asked the federal
government to lower the flat taxes it imposes on gas.
In
New York, when gas costs $3 per gallon, motorists pay about 66 cents per
gallon in taxes – more when the price of gas goes higher. Spano said it is
not right that governments should gain from these soaring gas prices. If
the county and the state portions of the sales tax were capped, motorists
would save about $2 per fill up -- and more if prices go higher.
Spano said. “I hope the state Legislature will come back in session and
act at once to freeze the revenues local governments can take in from the
sales tax on gasoline. This action to cap the sales tax can be taken
without affecting property taxes.”
Spano said in the meantime the county’s consumer department would review
the records from gas stations and if price gouging is found, evidence
would be referred to the state Attorney General’s Office or other actions
might be taken locally.
He
noted that gas stations assert that their suppliers will not give them new
shipments of gasoline if they do not pay the suppliers the higher
wholesale prices.
“However, I believe some of these stations are raising prices in
anticipation of higher wholesale prices – before they actually get the new
gas delivery. How else do you explain a rise at some stations of more than
$1 in one day?’’ |