Business & Tech

Gas Station Penalized for Sandy Prices

BP station in Huntington was gouging, state attorney general says.

A Huntington gas station will pay $10,000 to settle accusations of price gouging in the wake of Hurricane Sandy.

The BP station at 464 West Jericho Tpke., Huntington was one of several stations that reached an agreement with state attorney general Eric T. Schneiderman.
  
Huntington Patch featured the station in a story Nov. 2 because of the long lines of cars and pedestrians waiting for fuel as fears about a shortage grew. 

But its owner, Mirza Aliamad, told Newsday that he agreed to the settlement only to avoid much higher legal costs in court. He said his costs rose after the storm because he hired extra people to manage the lines of cars and people with gas cans. He also said his station served free coffee and sandwiches to neighborhood residents without power in their homes. 

The attorney general's office listed these figures:

  • Difference between wholesale price and retail price prior to storm: $0.87
  • Difference between wholesale price and retail price immediately following storm: $1.20
  • Increase in wholesale/retail spread before-and-after the storm: 48%
  • Retail price immediately following the storm: $4.30
The law on price gouging prohibits  "...merchants from taking unfair advantage of consumers by selling goods or services for an “unconscionably excessive price” during natural disasters. The price gouging law covers New York State vendors, retailers and suppliers. The law specifically says that a price may be considered excessive if there is a “gross disparity” between the prices charged immediately before and after the emergency and the disparity is not attributable to higher costs imposed upon the seller."

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