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Katrina Young fills up her gas tank at L&G Food Mart on North Madison Street in Thomasville on Wednesday. She said she buys her gas from the same station everyday but she didn’t keep her old receipts to make her eligible for refund.
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Published May 27, 2009 08:58 pm -

FINED FOR ‘GOUGING’
Governor’s Office penalizes six Thomasville gas stations

Teresa Williams

THOMASVILLE — Ten area gas stations have reached settlements with the Governor’s Office of Consumer Affairs as a result of recent price-gouging investigations, officials said Wednesday.

Gas stations in Thomasville, Cairo and Meigs (see list below) all agreed to pay fines and offer restitution following investigations into price-gouging after Gov. Sonny Perdue passed an executive order on Sept. 12, 2008, due to Hurricane Ike’s effect on the distribution of gasoline.

“In these agreements, while companies admit no wrongdoing, they have admitted into assurance of voluntary compliance, a court-filed document, in order to resolve the allegations from this office,” Shawn Conroy, OCA spokesperson, said.

Gary Patel, who owns six stores in Thomasville and one in Cairo — including Granny’s Country Store and L & G Food Mart #2, #3 and #4 — said he tries to keep his gas at least one to two cents lower than the competition at all times.

“When the storm hit, what happened was everybody went up and we went up,” he said. “When everybody goes down, we go down, too.”

Patel said there were stations with prices much higher than his at the time and felt these should have also been fined.

The OCA received more than 2,000 complaints or inquiries about price gouging or gas shortages from that time period and is still investigating cases, according to its Web site price gouging status report.

As of May 15, 91 cases have been resolved: 26 unfounded and 65 with a finding of price gouging.

Cases were evaluated on the individual facts, Conroy said. The settlements with violators included fines, consumer restitution or both.

Fines depend upon the length of violation and all fines collected are deposited in the state treasury.

“The goal is to enforce the law,” Conroy said. “And, once we penalize a company, they tend not to do it again. At the same rate, we don’t have the power to shut down a business or put them out of business.”

Under Georgia law, price-control statutes are activated upon the governor’s declaration of a state of emergency, which prevents retailers from selling goods or services at unreasonable or egregious prices.

“As I said during Hurricane Katrina in 2005, the governor and his Office of Consumer Affairs take the issue of price-gouging very seriously and will continue to be vigilant now and in the future,” Administrator Joe Doyle said in the status report.

If a gas station was required to provide restitution, signage had to be posted stating the details.

Conroy said some area stores have already used up their restitution windows, generally one month, but Granny’s and L & G Food Mart run until June 19 because signs may not have been properly posted.



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