Can they really raise gas prices while you wait in your car?

As wrong as it seems, gas stations really CAN raise the price of gas even though it’s already in their tanks.

An angry viewer called me to complain that last Friday (September 12) while he waited in a long gas line formed in the panic ahead of Hurricane Ike, that the store actually raised prices before he could get to the pump.

We’ve heard similar stories everywhere, and state representatives in Richmond have been covered up with complaints about price gouging. 

The state law is vague at best, referring to gouging as price hikes that are “unconscionable.” Ask most people and anything more than hike of a few cents per week is at least objectionable.  So what are we supposed to do when gas goes from $3.40 a gallon to $4.99 in the course of a day?

How can that not be, “unconscionable?”

“When there is an increase in demand service stations are allowed to raise prices to slow demand,” explained Steve Walz, Senior Advisor on Energy Policy to the Governor’s Office.

Walz told me on the phone that most claims of price gouging probably would not be found to be true.

“Convenience stores depend upon gas customers to come into the store and buy other products.  If there is no gas, they have fewer customers, so they are motivated to keep gas in their tanks.”

He said there is another angle from the store’s perspective.  Stores receive word ahead of time what the NEXT tanker-load of gas will cost.  They are permitted to raise the price of the current stock (what’s already in the ground at the gas station) in order to offset the cost of the incoming truck.

“In some cases they need to raise the money now, in order to pay for the next delivery,” he said.

Fair enough.  I guess.

Marion Horsely with the Virginia Department of Agriculture says extra inspectors are looking into all 2500 or so claims – but she has “no idea” how far along they are in their work.  Cases that are worth a closer look will be reviewed by the Attorney General’s office she said.

While Walz felt there would be few prosecutions Horsely said it was too early to tell.

The fact is that almost every gas station in the region either ran out of regular gas, raised the price above 4 and (some cases 5 dollars) or both.

So what’s “unconscionable?”  Do you draw the line at $4.25? $4.99?  $5.25?  Where?

Does the convenience store have the right to protect its interests?  How much?

It certainly stinks that we are all paying what we’re paying for gas, and it would be nice to get some revenge.

But every gas station I’ve seen or heard of raised those prices. I’d be surprised it they prosecuted them all.