Gas shortage leads to more than 600 reports of price gouging in Georgia, officials say
Complaints of price gouging are piling up across Georgia amid a fuel shortage crippling much of the Southeast.
Since Monday, the state has received more than 600 complaints of price gouging at the pumps, officials say.
“While we believe this to be a short-term event, we do not want consumers to be taken advantage of,” Georgia Attorney General Chris Carr said. “Our office will review all price gouging complaints received to ensure the law is followed.”
Georgia’s price gouging laws were activated Monday when Gov. Brian Kemp declared a state of emergency in response to the cyberattack against Colonial Pipeline. A panic-driven fuel shortage sent gas prices soaring and, at one point, resulted in outages at nearly 50% of gas stations in the state.
As of Friday morning, 48% of Georgia stations were still without fuel, according to fuel reporting website GasBuddy.com.
Motorists have also reported major markups since the pipeline hack last week, with gas prices reaching upwards of $3.50 per gallon.
“Right now it’s $3.90 — almost $4 a gallon,” driver Kaleb Bamber told WXIA on Thursday. “I feel like I’m in California.”
In Clayton County, some drivers saw prices peak at $3.20 per gallon with similar pricing reported in Macon, about 85 miles south of Atlanta.
“We’ve seen anywhere from where it was before the declaration of emergency to upwards of $4.50 a gallon,” said Smyrna Mayor Derek Norton, according to WAGA. “I want to make sure all the service station operators here know we’re paying attention and we’re going to be reporting any price gouging, anybody taking advantage of our citizens.”
Gov. Kemp suspended the state’s fuel tax through May 15 to keep prices from skyrocketing as Georgians continue searching for fuel. Colonial Pipeline said it restarted fuel operations on Wednesday, but warned that it could take a few days for supply to rebound.
What is price gouging?
Under the state’s price gouging laws, businesses cannot charge more for a product or service, identified by the governor, than they charged before the state of emergency was declared, according to the attorney general’s office.
This includes motor and diesel fuel.
A price increase at the pump doesn’t always mean price gouging is at play, however. Carr said it’s not unusual for prices to rise slightly, especially in times of increased competition and demand.
Markups on products and services specified by the governor are only allowed “if they accurately reflect an increase in the cost of new stock or the cost to transport it, plus the retailer’s average markup percentage applied during the ten days immediately prior to the declaration of a state of emergency.”
What’s the penalty for price gouging?
Businesses accused of price gouging can be fined anywhere from $2,000 to $15,000 per violation, the attorney general said.
“Our first line of action though … when we receive a complaint, we will immediately be putting those businesses on notice in hopes the behavior ceases right then and there,” Carr said Monday.
Since the start of the pandemic, the attorney general’s office said it has sent approximately 953 warning letters to deter price gouging.
How do I report price gouging?
Consumers can report suspected price gouging to the Department of Law’s Consumer Protection Division by calling 404-651-8600 or 1-800-869-1123.
Complaints can also be filed online at consumer.ga.gov.
This story was originally published May 14, 2021 at 12:09 PM with the headline "Gas shortage leads to more than 600 reports of price gouging in Georgia, officials say."