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State probes spikes in retail gas prices

HARTFORD — Govenor M. Jodi Rell has directed the Department of Consumer Protection to subpoena records from Cumberland Farms Inc. after receiving complaints about a sudden increase in gasoline prices at the company’s stores.

Rell said last week that subpoenas are being prepared for several other gasoline companies and her administration is crafting specific language to define “price gouging� and make it easier to investigate and prosecute suspected profiteers.

On Friday, in a press release, Attorney General Richard Blumenthal said that his office is also looking at companies as part of an antitrust investigation.

“We are vigorously investigating wholesalers as well as retail gasoline price spikes that occurred immediately before and after Hurricane Ike,� Blumenthal said in his press release. “Exploiting disasters for dollars is intolerable and illegal in Connecticut.�

On Monday, oil prices jumped by more than $25 a barrel.

The state has set up a gas gouging prevention hot line for consumers at 800-842-2649.

By early last week it had already received hundreds of calls on price increases ranging from a few cents per gallon to more than 40 cents per gallon.

About a third of the complaints concern a sudden increase of as much as 48 cents per gallon in retail prices at Cumberland Farms outlets.

Cumberland Farms retailers have told motorists the increases stem from major spikes in the costs they were paying for wholesale gasoline deliveries.

Subpoenas have been sent to the Canton, Mass.-based company seeking information about the chain’s daily wholesale prices in recent weeks, as well as information on the dates and times of wholesale deliveries. Subpoenas are also going to Cumberland Farms retailers seeking similar information.

The governor said she has directed the Department of Consumer Protection to prepare additional subpoenas for information about price increases at gas stations operated under the Citgo, Valero and Getty or Lukoil brands.

Rell said she plans to contact a wide range of experts, including retail-level dealers, to set a firm standard for defining price gouging, especially in volatile markets such as retail gasoline. Legislation to revise the standards would be offered when the General Assembly meets next year.

Shaw Israel Izikson contributed to this story.

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