Gas stations must explain prices

RALEIGH — Several North Carolina gas stations were subpoenaed Monday for dramatically raising their fuel prices after Hurricane Ike, reportedly charging as much as $7.32 a gallon for regular fuel.

State Attorney Roy Cooper said seven retailers were targeted for charging more than $5.49 a gallon last week, though more subpoenas are being prepared. Retailers will have 10 days to explain why their prices went so high and could be fined up to $5,000.

"There's no excuse for ripping off consumers who are already hurting from high gas prices," Cooper said during a news conference. "Gouging for greed will not be tolerated in North Carolina."

Cooper took action after his office received thousands of complaints about price gouging, a large number from western North Carolina. The first round of subpoenas went to gas stations in Anson, Ashe, Cherokee, Guilford, Montgomery, Stanly and Transylvania counties.

The average price for a gallon of regular unleaded gas in North Carolina is up to $4.085 a gallon, more than 50 cents higher that it was last week, according to auto club AAA Carolinas. Gas prices shot up shortly after Hurricane Ike struck the Texas coastline and its numerous oil refineries.

Gov. Mike Easley declared a state of "abnormal market disruption" on Friday and signed an order allowing Cooper to enforce the state's anti-gouging law. The subpoenas represent the first time the anti-gouging law has been put to work since it was passed in 2006.

There's no specific formula to determine what price is considered gouging, but Cooper said he'll use several factors such as wholesale price and quantities.

The Consumer Protection staff at the Attorney General's office has fielded more than 2,800 calls from concerned consumers since Friday.

Cooper said no calls have come in from retailers complaining about gouging from wholesalers.