Durham gas station gouged prices during spring gas shortage, AG Stein lawsuit claims
The company had paid only $2.65 per gallon for its most recent fuel shipment April 26, according to the lawsuit.
Posted — UpdatedJack’s In & Out Food Mart, located on Fayetteville Street near downtown, raised its premium fuel price from $3.29 per gallon on May 9 to $5.499 per gallon on May 11. On May 10, Gov. Roy Cooper had declared a state of emergency related to Colonial Pipeline's shutdown, which put the state's price gouging laws into effect.
The company had paid only $2.65 per gallon for its most recent fuel shipment on April 26, according to the lawsuit.
The company also advertised regular gas at $2.909 per gallon but was not actually selling regular gas, the lawsuit claims. When customers arrived, the "bait-and-switch" tactic would force them to buy the premium fuel, listed at an "unreasonably excessive" markup, according to the lawsuit.
Colonial Pipeline's computer system operating its gas lines fell victim to a ransomware attack May 7, prompting a shutdown of its entire pipeline system. The system restarted May 12.
During shortages, companies may have to pay more to resupply and raise prices accordingly, but in a news release announcing the lawsuit, Stein's office said businesses cannot raise price to profit during an emergency.
Stein’s lawsuit seeks civil penalties, consumer restitution, forfeiture of profits earned while price gouging and other things.
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