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Gas Gouging Before and After Ike
 
   With hurricane Ike bearing down on Houston and the Gulf Coast on Thursday evening, speculation began as to the damage and impact Ike would have on oil production in the Gulf. Following the story breaking on television on Wednesday by KFVS-12 and then again on Thursday evening by WPSD-TV, the panic began. 
 
   As commuters learned of the anticipated price increases, an ensuing frenzy began at local stations. Many drivers found they were too late when it was reported that some stations in Paducah had already raised their prices to $4.59 per gallon. Ballard Countians arrived home on Thursday evening only to awaken on Friday to find the prices had increased from $3.69/gal to $4.59 in LaCenter. Prices in Wickliffe didn’t go up until after noon on Friday but as I pumped $40 in gasoline at $3.79 gallon, the price was being changed to $4.29 a gallon.
 
   On Thursday evening, a phone call to Mike Lawrence in Paducah caught him off guard as he had just paid $3.69 for gasoline in Lone Oak. He called back a few minutes later to say he had left the house and drove back to Lone Oak where the gasoline had already gone up. Over the next hour or so, calls back and forth revealed a drastic variation in prices across town. After firing a few quick e-mails to Gov. Steve Beshear, Congressman Ed Whitfield and others, the BW continued to monitor the prices overnight.
   At around 7 a.m. on Friday, the BW received a call from Frankfort informing that the Governor had received the e-mail and had passed the information on to Attorney General Jack Conway. Another call later in the day from Congressman Whitfield’s office advised that he was issuing a statement on his position shortly following the call.
 
   At 1:00 p.m., Gov. Steve Beshear held a press conference concerning the escalating gas prices and the storm’s aftermath. The Governor signed an executive order declaring a state of emergency to prevent price gouging in Kentucky as a result of the impact of Hurricane Ike on the Gulf Coast. The declaration allows the Governor to implement provisions of state law to protect consumers predatory price gouging by unscrupulous businesses. The Governor’s action will allow many consumer protections to be put into force. Under the order, Attorney General Jack Conway is empowered to investigate and, if appropriate, prosecute anyone who sells gasoline, building materials and other products at predatory pricing levels during a time of disaster.
 
 “If you have any specific information regarding price gouging practices at a gas station or retail outlet, please contact the Attorney General’s office.”
 
   Congressman Ed Whitfield also released a statement on Friday afternoon. ““I am very concerned to hear reports of alleged price gouging taking place in Kentucky as Hurricane Ike threatens oil production in the Gulf Coast. I have worked hard to ensure that consumers are protected against unfair and excessive price spikes and I have supported legislation which has given the Federal Trade Commission (FTC) more authority to investigate alleged price gougers. I would encourage anyone who believes they have been a victim of price gouging to report the incident to the Department of Energy at http://gaswatch.energy.gov. They will review the data and refer any findings to the FTC, the U.S. Department of Justice or individual State Attorneys General. My staff and I will be monitoring this situation in the days to come. I will not tolerate price gouging and will take the necessary steps to see that the public is protected, including Federal and State prosecution of those suspected of price gouging.”
 
   Local stations are at the mercy of the gasoline suppliers according to station owner Allen Damron. “We receive a truck from Trans Montaine in Paducah without knowing the price. We don’t know what we are being charged until the truck is actually on the lot.” Damron said that a call to the supplier requesting a price is useless at this time. “Their speculators are changing their projections from one minute to the next.”
 
   News reports from Galveston and Houston today revealed that ten oil platforms in the Gulf region were completely destroyed by Ike. The impact this will have on gasoline prices in our area remains unseen. Oil prices at this time are $99 per barrel. Pump prices, in accordance with that pricing, should range in the $2.60 to $2.65/gal. range. However prices at the pump continue to hover around $4.00 per gallon. 
 
   Phone calls to two fuel suppliers in the Paducah area were not returned, however, there is speculation that over one hundred barges remain tied up along the Ohio and Mississippi Rivers between Paducah and Memphis containing gasoline. This fuel was placed on these barges prior to price increases and will be placed in tanks for the consumer at the already inflated prices.
 
   Consumers are currently paying more than 1/2 of minimum wage for each gallon of gasoline purchased. After taking taxes from $5.75 an hour minimum wage pay and $3.99 a gallon gas, there is very little left for the necessities: food, housing, utilities, medical care. 
 
To elaborate, imagine a consumer earning $18,000 /yr.; $346 per week (gross pay mind you). At $3.99 per gallon for gasoline and the average worker drives 20or more miles one way, per day per week and the average vehicle getting 20 mpg.   This imaginary consumer would be using 40 gallons of fuel only back and forth to work per week or a total of $160.00 in fuel costs.   The salary after taxes would be estimated at about $250 per week less $160 in fuel leaving $90 for food, clothing, utilities, child care, medical, etc.
 
   The impact the fuel prices have on our day to day lives is astronomical. Many consumers now have to choose between driving to work, buying their medication or feeding their family.
 
   While the prices of fuel have not dropped back down to where they were before Hurricane Ike, they have dropped below $4.00/gal. in some areas.
 
    Again, if you feel you are a victim of price gouging you can report the incidents to: http://gaswatch.energy.gov/ or contact the office of Attorney General Jack Conway at

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