Gustav Churns Price Fixing Allegations, Cautions

BIRMINGHAM, Ala—Gustav’s tropical path may be churning gas prices higher along the Alabama and Mississippi coast, and Attorneys General in both states are issuing stern warnings to businesses and consumers.

A pre-storm rush on gasoline in Mobile has many filling stations sold out, and prices climbing where fuel remains available. Prices are up as much as 10 cents in parts of south Alabama, 20 cents higher in parts of coastal Mississippi.

Hotels report a flood of bookings from potential evacuees. Rooms as far north as Montgomery are full through next week.

“Not knowing where the hurricane is going to go, I think people are just doing this as a precaution,“ said Dawn Hathcock of Montgomery’s Convention and Visitor’s Bureau.

The rush for hotel space, storm supplies and especially fuel, with prices up in some areas, is bringing a stern warning from state Attorney General Troy King.

“It’s against the law in Alabama and we’re prepared to hold those who do it responsible if they do,“ King said.
 
Warnings about price gouging don’t stop at the filling station. The Attorney General says sudden higher prices for any material or supplies should be a warning sign to consumers. There’s also a warning about the aftermath if Gustav heads this way.

“These are times when our people need to be careful. They need to be careful because as damage from the storms comes through our state, we’re going to see people who come in to take advantage of the situation,“ King said.

King urges people to check licenses and references of service providers. He also issued cautions about donating to legitimate charity groups offering aide to storm victims.

For complaints about price gouging, contact the Attorney General’s hotline, 1-800-392-5658.