New York Attorney General Letitia James is reportedly putting the pedal to the metal by opening a sweeping gas price gouging investigation into oil companies and refineries.
Her inquiry will examine New York‘s supply chain across the board for gasoline, including oil extraction, the refinery process, pipelines, and gas sales at the pump, sources told CNN.
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“Reminder to gas stations and fuel companies: price gouging is illegal. New Yorkers, report dramatic increases in the price of fuel to my office,” she tweeted last month with a form to report gouging.
The attorney general has broad authority to investigate possible price gouging, but it remains unclear if she has any specific evidence the practice is taking place. New York laws permit the attorney general to examine all actors in major supply chains, such as shipping firms, distributors, retailers, and manufacturers, per the outlet.
“New York’s price gouging law bans companies from taking advantage of a crisis to charge excessive prices for vital and necessary goods and services,” her office said in a press release last month. The release discussed a price gouging “rulemaking process” her office began to strengthen rules against companies using the pandemic to pad their pockets with excessive pricing.
Gas prices have been skyrocketing across the United States, putting a financial squeeze on families at the gas pump. Although national prices are down about 25 cents from last month at $4.07 a gallon, they remain significantly higher than last year’s average of $2.86, according to the American Automobile Association. New York’s current gas price average eclipses the national average of $4.19, per AAA.
The attorney general’s office did not respond to requests for comment from the Washington Examiner.
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Many oil companies have argued the price surge has been spurred by an imbalance of supply and demand brought about by shifts in consumer behavior before and after the COVID-19 lockdowns.
“This is an industry of price takers, not price makers, and countless investigations throughout history have shown that changes in gasoline prices are based on market factors,” American Petroleum Institute spokeswoman Bethany Williams said, according to CNN.
