NEW YORK - Senators Charles E. Schumer and Jon S. Corzine are calling for the Federal Trade Commission (FTC) to investigate possible gasoline price gouging on already high gasoline prices caused by Hurricane Katrina in the New York and New Jersey Metropolitan area. The two senators held a press conference at a Luk Oil gas station in Manhattan on Labor Day.
“That is why we are asking the FTC to do a thorough study, to come back to us with the recommendations on how we eliminate price gouging at a time and a place that should be focused on all of us pulling together as a community as opposed to taking advantage of circumstances,” said Sen. Corzine of New Jersey.
Despite the oil supply issues put forth by Hurricane Katrina, Schumer and Corzine argued that the “fluctuations” and “disparities” in gas prices in neighborhoods in New York City and New Jersey were the result of “excess profiteering” by many parties from major oil companies down to local gas stations.
“The prices could be below $3.00 at one station and around the corner they’re close to $4,” said Sen. Schumer of New York. “It’s about time the FTC look at this from start to finish, from where the oil is pumped to where its refined, to the pump line that ships it up, to the individual gas stations.”
A survey showing price ranges over various gas stations within the five boroughs released by Schumer and Corzine reported ranges of $3.19 to $3.55 in Manhattan.
The average “Regular” gasoline prices in New York City, according to AAA, costs about $3.25, up $0.64 from a month ago. In New Jersey, prices on average were $3.16, up $0.86 from a month ago. Gasoline prices across the country vary from a high-$2 range to a mid-$3 range.
“This is unheralded, unprecedented and it’s costing people in the Metropolitan area a fortune,” said Sen. Schumer.
“We are in the midst of a national tragedy. All of us have feelings of grief and anger and frustration, but it shouldn’t be compounded by people using that as an opportunity to exploit other people’s hardships,” said Sen. Corzine.
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