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GAS STATIONS REACT TO PRICE GOUGING CLAIMS IN ARKANSAS

By Ezra Mann/OF THE COMMERCIAL STAFF
Thursday, September 18, 2008 10:19 AM CDT

While Arkansas consumers are still fuming over the gas price spike that came with Hurricane Ike, some fuel stations that have been issued subpoenas are working to prove that they were not engaged in price gouging.

Attorney General Dustin McDaniel began issuing subpoenas this week against 52 gas stations over spikes in fuel prices around the state after more than 1,450 people phoned his office with complaints and more than 2,400 people e-mailed or sent text messages about suddenly high gas prices. Some retailers bumped gasoline prices to $4.50 per gallon or more as Ike took aim on the Gulf Coast and $4.64 a gallon at a station in Osceola.

Several Day & Nite stores in Southeast Arkansas, including locations at Sheridan, England, Camden and El Dorado were on the AG’s list of places that had been issued subpoenas.

Marsha Cuca, manager of Day & Nite in England, part of a Texarkana, Texas, based gas station chain that has been issued a subpoena, said that many people over reacted and reported nearly any price increase as a gouge. She said people need to get their facts straight and understand that her station did not raise the price of fuel until it was sold fuel at $4 a gallon.

The station charged $4.35 a gallon for unleaded fuel after it ran out of its fuel that cost $3.59 a gallon. Cuca added that they were within the law for the increase after taking into account the various fees they are charged. The convenience store chain receives fuel from Lion Oil in El Dorado.

Prices were set by each station for the chain and the company will be glad to have it all come out so the public is aware, said Pat McDowell, operations manager for the Day & Nite corporate office. Many stations are selling at a loss because they do not want to be seen as charging too much and all information has been sent to the Attorney General’s office.

Friday, Gov. Mike Beebe declared a state of emergency in response to gas-supply disruptions from the hurricane that struck the Texas coast. State law prohibits businesses from raising their costs by more than 10 percent in an emergency.

McDaniel’s office was still reviewing complaints it received over the weekend and McDaniel said he did not know if he would issue more subpoenas.

The Associated Press contributed to this report.

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