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November 1, 2005

PRICE GOUGING? BY WJHG PANAMA CITY NEWS

Category: General Comments — infohungry @ 10:42 am

Price Gouging

By Jason Davis
WJHG-TV
The state is accusing two more gas station owners of price gouging. One of the stations is here in the Panhandle. The Inland gas station in Chipley faces a $12,500 fine for raising gas prices almost 76 cents on September 1 as Hurricane Katrina was threatening the Gulf Coast. The gas station is owned by

Southwest Georgia Oil Company in Bainbridge, Georgia

.

Some consumers will welcome that news.

As gas prices go up and down like a yo-yo, the five big oil companies are posting record profits.

Exxon-Mobil posted its largest quarterly profit ever, nearly $10 billion.

Driver Bobbijoe Olsen says, “I think they have enough money. We’re going through some really hard times with the natural disasters, and I think it’s terrible that they playing with our lives.”

“I heard before that it was them that was raising the prices on the gas so much. It was the individual store and everything. Now theyre saying that they’re making so much money off of everybody. It seems ridiculous that they make money off of people’s suffering.”

That other gas station accused of price gouging was in Oakland Park near Ft. Lauderdale. Owners face a $2,500 fine for raising gas prices 22 cents on August 30.

• • •

44 Comments »

  1. These gas companies are not gas gouging. They are
    making a profit so that they can contribute to the
    schools, local little league teams, and other community
    needs. Gas is $2.14 in Tifton, but I bet that gas
    company has just gotten their tanks refilled at a lower
    wholesale gas price, so they can pass that lower cost
    on to the citizens of Tifton. Anyway—– What comes
    around will (and I promise) will come around. You will
    reap what you sow.

    Comment by TBI — November 1, 2005 @ 2:19 pm
  2. Panama City news has reported that the state of Florida has fined Southwest Georgia Oil Company for price gouging. They apparently raised gas prices at their Chipley store 76 cents a gallon before Katrina ever hit. According to channel 7 news SWGA Oil has been fined $12,500(By the State of Florida) for gouging the citizens of Chipley, Florida. If this is true it should be headline news on this website and the local newspaper, what gives??
    To address TBI, I had no idea we were supposed to pay higher gas prices to support local needs, I thought we paid city/county/school taxes for that stuff.
    I am also sure if gas is $2.14 in Tifton, It could also be sold for close to that amount here. The local oil groups seem to always be lagging a week or two in lowering there prices to match prices in neighboring communities, If that is the case, it is just a another sneaky form of gouging.

    Comment by tpdog107 — November 1, 2005 @ 4:32 pm
  3. The avg. price per gallon in Bainbridge is higher than our surrounding communities.

    I buy and spend as much money as I can locally because I know it helps us all out in the long run. However, when it comes to gas, I must admit, if I am on the road as I am, I will make sure I have as much gas as I can buy AWAY from Bainbridge. Awhile back I did the math. On avg. the price for a gallon of gas in out fair city was 12 cents higher.

    If 30K people start buying their gas “coming into Bainbridge” (Albany) like I am compelled to do, then that is going to hurt the local economy. Seems to me that the better strategy to make more money in selling gas is volume, not setting the price higher. Then again, I admit, my business is not selling gas…just buying.

    I am asking Mr. Harrell to comment. Help us help you help us understand…

    Respectfully submitted. Not picking a fight…

    Comment by neutron — November 1, 2005 @ 7:31 pm
  4. What gas costs today in Bainbridge is what I was paying almost two weeks ago in Cairo/Thomasville area.

    Comment by Adjudicator — November 1, 2005 @ 8:18 pm
  5. I’m going to have to respectfully disagree. I drove from Bainbridge to Brunswick today and gas was more expensive the entire way until I got to Brunswick. Its always cheaper in Brunswick though.

    Comment by AJ Huff aka Iron Man — November 1, 2005 @ 10:46 pm
  6. I saw a very small section in the back of the paper last week where the price for gas and surrounding cities were listed. These stats had Bainbridge having the lowest gas prices from here to Albany to Atlanta.

    I found that hard to believe. As far as what TBI said, raising the price of gas so that they can donate
    the money to charity or local sports or events is a ridiculous way to look at this. Even if they donate
    to these functions, they are still charging way too much for this gas. I remember a rep from SWGA Oil saying that their prices were so much higher because they go through more gas than little stations would go through.

    Well, if this is true, then SWGA Oil should be purchasing the cheaper gas way before the little stations.
    MEANING, SWGA Oil at some point should have lower prices than the small stations. What’s not to understand?

    Comment by Mortal Treason — November 2, 2005 @ 12:04 am
  7. Larry why are you not saying give it a rest now!!! You
    edited my comments last time why are you not editing
    now. Is it because you only print when it is against the
    Harrell’s. As far as the gas prices for all those of you
    who believe it is cheaper elsewhere why don’t you go there
    and purchase!!!!!!!!!!!!!!!!!!!!!!!!!!

    Comment by tyj — November 2, 2005 @ 9:53 am
  8. As for TBI— My whole first statement was total
    sarcasm. There were people who were defending the high
    gas prices–saying that it was okay to have the gas
    high, because gas station owners around here donate
    to the local community functions. The other reason they
    justified the gas prices being high is because the gas
    stations had to price the gas according to what they
    purchased the gas for that was already in the tanks and
    I have seen many gas trucks around here recently filling
    the local stations tanks.
    Somebody asked me last night if I believed in the
    “Free Market” and I told them yes and that I also
    believe in “Free Choice” to buy products where it was
    better for me. High mark up on gas is good for the
    vendor and lower gas prices are good for vendee. But
    I said in my original comment “You reap what you sow”
    and with the local news reporting the fines on gas
    gouging–It looks like it is coming true.

    Comment by TBI — November 2, 2005 @ 11:18 am
  9. TYJ
    So NOT a fair question

    AND you are so wrong in your thinking.

    I do not remember what I edited on your past comment
    and as far as “why are you not saying give it a rest now”

    What do you expect to happen when a story like this breaks?

    Comment by Larry — November 2, 2005 @ 11:22 am
  10. AND TYJ
    RE Your Statement “believe it is cheaper elsewhere why don’t you go there and purchase”

    Are you suggesting that overall the prices are not cheaper in some surrounding areas?

    You are welcome to again look at the actual signs that were shown a while back, in particular Woodalls, that was priced lower in Albany than in Bainbridge, and not just for 1 day.

    Comment by Larry — November 2, 2005 @ 11:29 am
  11. TYJ,
    Don’t worry, those of us who can will buy elsewhere. I
    commute daily to Tallahassee, and buy my gas at Bishop’s
    where it is ALWAYS cheaper than Inland, or anyone else
    in Bainbridge.
    As for the rest of my purchases, I try to patronize the
    smaller stores locally. But not to the point of paying
    much higher prices to do so.
    The reality of it is, people are going to buy where it
    is cheapest for them, just because someone tells us that
    it is right to overcharge doesn’t mean we are stupid enough
    to believe it.

    Comment by sirduke — November 2, 2005 @ 1:36 pm
  12. Larry

    The only thing I expect of you is for you to be fair to
    all parties when news breaks. Sometimes it seems as though
    you only print the bad when it comes to certain “breaking
    news” You edit people’s comments but not your own. With
    you having this web site you should be neutral with your
    thinking.

    As far as gas prices in surrounding areas: Go take your
    pictures now. Donalsonville is $2.33 for Unleaded.
    BAINBRIDGE IS $2.29 at most places (Including INLAND).

    SIRDUKE as far as Bishop’s goes his gas is the same as
    Bainbridge and he also has lower prices so that he can
    entice Floridians to shop with him!!!!!!!!!!!!

    Comment by tyj — November 2, 2005 @ 2:17 pm
  13. Thanks for the info, it is appreciated and needed.

    If you feel I have missed any news, PLEASE email me and let me know.

    Comment by Larry — November 2, 2005 @ 2:28 pm
  14. tyj,
    obviously you must work for Inland or Sharber! Do you suggest that Larry only print good news on this site?? The facts are - SWGa oil has been cited for price gouging by the state of Fla. Fines are reported to be over $10,000 . What say you tyj to that??
    I agree with sirduke what gas I buy in Bainbridge will be from smaller independent stations. I have to buy gas for sure but it doesn’t have to be from an Inland or BP. Hope more Bainbridge folks will do the same!
    Thanks, Larry for reporting the facts good or bad.
    Just for info - gas in Albany is $2.23 at numerous locations.

    Comment by tpdog107 — November 2, 2005 @ 3:51 pm
  15. Check again TYJ, I drive by there daily, his price runs
    on average around 5 to 9 cents per gallon cheaper.
    And, during the Katrina/Rita fiasco, the prices there
    were a lot cheaper.
    His prices are lower than Florida’s almost always, so there
    isn’t any reason for him to undercut Bainbridge prices
    to entice Floridians.

    Comment by sirduke — November 2, 2005 @ 4:04 pm
  16. Could someone explain to me why gas in Valdasta today was $2.18 when it came from Bainbridge? I would understand if it was more b/c of the fuel cost to get it there but for it to be cheaper I just don’t get it. I know that the inland stores jump there gas high b/c my father hauls gas everyday to other companies to Thomasvile and Valdasta and knows what they pay for it.

    Comment by LENAY — November 2, 2005 @ 8:51 pm
  17. I did drive by there Sunday and it was the same price
    as Bainbridge.

    to tpdog107:
    I do not work for Inland or Sharber. That proves one of
    my points as to people assuming just because you don’t
    jump on the band wagon to critize the Harrell’s or S.W.
    Ga. Oil then you must work for them. I don’t even
    know the Harrell’s. Yes I propably do know one or two
    people who work for S.W. Ga Oil but I just know who they
    are do not socialize with them.

    And sirduke: I am not angry, just expressing my opinion
    just like you are. So who is the first one to holler, looks
    like it was you. Seems you took offense, huh?

    By the way where do you think the small stations get
    their gas from? Do you think it might be Inland or
    Sharber?

    Comment by tyj — November 2, 2005 @ 9:35 pm
  18. Inland is trying to make themselves look good in the eyes of the Bainbridge residents right now at this
    moment. Inland’s prices are 1 cent cheaper than anyone else in town to my knowledge. Who cares? It still doesn’t take away the fact that SWGA Oil price gauged everyone in this town that was dumb enough to purchase gas from them. Also, I know from a good source that SWGA Oil demanded a certain company to continue trading business with them through this price gauging period or SWGA Oil would stop using the other companies services.

    Is it fair to threaten other companies in this manner when all the other companies are doing is exercising their freedom of choice? This goes back to what I was talking about on the other topics. The “BIG GUY” pushing the “little guy” around. That what makes you or breaks you in this town and other small towns.
    I have always enjoyed this question since moving here…..”Who’s your daddy? or family? or momma?” People want to know that you are FROM here or either they want to know your family is FROM here.

    Now, Ralphj, I love Bainbridge and I am not being sarcastic, so don’t start on me about leaving town this time.
    :) This town just intrigues me.

    Comment by Mortal Treason — November 2, 2005 @ 10:46 pm
  19. “Greed enables a person to buy the things money can buy while losing the things
    money cannot buy.”

    Comment by Quips and Quotes — November 2, 2005 @ 11:48 pm
  20. Now there’s a nerve, “People want to know that you are FROM here or either they want to know your family is FROM here.” You can bank on that. Not the friendliest town to move to. Hmmm, wonder if that has any bearing on bringing business to Bainbridge also….

    Comment by Iron Man — November 3, 2005 @ 1:00 am
  21. I am going to disagree with the reason why people ask who’s your daddy.

    I have only been in Bainbridge about 13 years, but I find myself asking the same questions. It is not to judge someone in any way. It is to relate to the person. If you know somebody in their family it does ccreate a connection with the person.

    It goes back to the point that this is a small town.
    People know lots of the other people in town and they want to relate.

    Comment by Larry — November 3, 2005 @ 1:14 am
  22. OK. Chew on this.

    Gas prices today, 03 November 2005. Heading west on US82/84

    9:00AM
    North Brunswick $2.29
    Middle Brunswick $2.35
    South Brunswick (I95/US82 interchange) $2.29/$2.02/$2.06/$2.16
    West Brunswick $2.41
    Brantley/Glynn Co. Line $2.39
    Waynesville $2.33
    Nahunta $2.35
    Hoboken $2.35/$2.33
    East Waycross $2.33
    Middle Waycross $2.31
    West Waycross $2.32/$2.31/$2.34
    Manor $2.35
    Homerville $2.39
    Dupont $2.30
    East Valdosta $2.29
    Middle Valdosta (I75/US84 interchange) $2.24/2.19/2.09/2.07
    West Valdosta $2.28/$2.29
    Quitman $2.31/$2.29/$2.28
    Boston $2.29
    Thomasville $2.29
    Cairo $2.28/$2.27/$2.31/$2.30
    Whigham $2.28
    East Bainbridge $2.28
    Middle Bainbridge$2.28/$2.29
    South Bainbridge $2.29
    1:30PM

    So, what is the problem?????
    Is the problem real or imagined????

    Comment by Iron Man — November 3, 2005 @ 3:25 pm
  23. Prices in Dougherty County for regular unleaded gasoline $2.24 & 9/10 as of Today

    $2.24 & 9/10 as of Today 11/03/2005
    Shell station, Moultire and Mock road, in Albany

    Comment by infohungry — November 3, 2005 @ 4:28 pm
  24. 2.07 in valdosta is a big difference from 2.28 or 2.29

    Comment by infohungry — November 3, 2005 @ 4:29 pm
  25. Most of Valdosta is in the $2.29 range, same as here. Both Brunswick and Valdosta show an amazing range of gas prices at the interstate exits. Those prices are all found next to the exits. So I think you are comparing apples to oranges. There is something in the system that allows those stations at the interstate to low ball their prices. This could well be volume pricing. If you ignore these two fliers (about 4-6 stations out of the whole drive)then the prices in Bainbridge are not out of line.

    Comment by Iron Man — November 3, 2005 @ 5:02 pm
  26. iron man

    since the katrina/rita scare when the real gouging took place, gas in albany has been anywhere from .10 - .20 /gallon cheaper than in Bainbridge consistantly. That’s real not imagined. I go there every week day. I’ve seen it with my own eyes. The local oil co has been charged by the state of FLA for price gouging-thats real not imagined. saw it on this web site and on channel 7 panama city news. Gas today in albany at leary/vanderbilt intersection is $2.17, gas anywhere in Bainbridge is $2.29. Real not imagined!

    You do make a good point that overall gas prices are stabilizing, but they should be after all the bad press the oil companies have been getting lately. (9.9 billion dollar quartely profits,gouging fines etc.)
    I expect gas will get to around $1.99 soon and the local oil cartels will keep it just under $2.00 until we quit whining.
    But soon as next summer rolls around and a cloud pops up in the tropics, look out!

    Comment by tpdog107 — November 3, 2005 @ 5:06 pm
  27. So why today should gas in Bainbridge be lower than that in Albany? That seems to be everyone’s reference. Why Albany? Why not Kingsland or Rome or Augusta or any other Georgia town?

    I would like more information on the gouging in Florida. Please share the website. I don’t understand how a wholesaler is accused of gouging at a retail station. Doesn’t mean it isn’t legit, I just want to understand better.

    Comment by Iron Man — November 3, 2005 @ 5:22 pm
  28. There is a wholesale side and a retail side of the business.

    Comment by Larry — November 3, 2005 @ 5:33 pm
  29. Ironman, you must travel on secluded roads, because gas
    can be purchased just off of the interstate in Valdosta
    for $2.07 on US84 and it was in Tifton today at a Petro
    for $2.12. Are your gas prices for real that you saw or
    imaginary. By the look of your gas prices, it seems as
    though maybe you are trying to protect some gas vendors
    here in Bainbridge. I’m not blaming the gas prices on
    just one vendor–one is just as liable as the other.

    Comment by TBI — November 3, 2005 @ 5:38 pm
  30. Interesting, I post real data and I get flamed. Ok. I clearly stated “heading west on US82/84. That corridor can’t be that obscure. The prices are all real. Would you like to see my receipts where I stopped along the way?

    Yes there are 2 gas stations off I75 at $2.07, two at $2.09, two at $2.19 and one at $2.24. The rest of Valdosta is at $2.29 along that route, at least 5 or more gas stations.

    I must have passed 50 or more gas stations between $2.29 and $2.35. You reference two gas stations at $2.07. Which is the aberation?

    One gas station in Albany is $2.17. Again which is the aberation? Now we are quoting Tifton. I don’t understand why these are the references. Why not Kingsland? Why not Oklahoma?

    I have no affiliation with any gas station. I buy gas when and where I need it. It doesn’t matter if I am in Brewton, AL, Monroeville, AL, Brunswick, GA, Bainbridge, GA, Tallahassee, FL or Miami, FL.

    Comment by Iron Man — November 3, 2005 @ 6:51 pm
  31. Ironman
    I just wanted to say thank you for the list of prices.
    People don’t care if you print the truth they just want
    something to fuss and complain about. Several people have
    said they would be happy if gas got down to $2.50 per gallon
    well guess what, everyday we hear someone else complain
    about how much gas is. No matter how much it comes down
    they are still going to complain until they find something
    else to fuss about. By the way any advice on the voting
    thing? Your friend “Dudette”

    Comment by tyj — November 3, 2005 @ 8:49 pm
  32. You can view Florida’s Statutes for price gouging at the following link
    http://www.800helpfla.com/pdfs/statute_price_gouging.pdf

    Comment by gagoldfish — November 4, 2005 @ 9:50 am
  33. To the last 2 posters

    This discussion has gotten totally off track. Let me make a great point in YOUR favor. The national average price for gasoline is $2.44/gal, so we are darn fortunate to be paying only $2.29.

    Please read the opening article one more time, the one being presented by Panama City channel 7 news, not some Bainbridge opinion letter.

    Now back to the real issue do you think that raising the price of gasoline that is already paid for and in the station’s tank by .76/gal is not price gouging?
    Do you think that recording a record $9.9 BILLION profit while Americans are suffering a crisis is not the result of gouging??

    I’m reading that you guys defend this stuff and recognize this as Companies getting it while the gettin’s good- the good old free market place-right? Especially when only a few companies have a captive market.

    I believe if we had a vote an overwhelming majority of Americans would say yes we have been gouged-big time. But of course you would have to be a registered voter first. (and thats being discussed in another thread)

    Have a nice weekend and burn lots of gas-
    tpdog

    Comment by tpdog107 — November 4, 2005 @ 10:06 am
  34. Ironman, you didn’t get flamed, but you wanted to post,
    all of those other gas prices, when in reality, you saw
    lower gas prices, but somehow failed to report those. I
    just want to know “why”? By the way, I do believe in
    people making a profit, but not gouging.

    Comment by TBI — November 4, 2005 @ 2:43 pm
  35. You are arguing two different points.

    Yes I agree that on September 1st that if a gas company raised prices in anticipation on the pending hurricane, that would be price gouging.

    I do not beleive that gas stations right now, today, are gouging customers.

    The petroleum industry has been having record prices for years. In 1999-2000 when I was working with the oil patch guys, oil was $25-30 per barrel and profit was at 100%. Now the price of oil has doubled, but production costs are the same. Pure profit.

    Would I like to see the petroleum world give up some of their profit, say drop from 300% to 200%, to give us a break at the pump? Sure. Never going to happen.

    You are also forgetting three important factors, 1)Chinese demand, 2)wartime demand, 3)OPEC. Those three have more effect on the price per barrel of oil than the producers themselves.

    I hope you have a pleasant week end also.

    Comment by Iron Man — November 4, 2005 @ 3:07 pm
  36. TBI,

    I don’t know what you are talking about. I reported every price I saw as I drove west from Brunswick. I did not record the frequency.

    If you are referring to the prices in Valdosta, go back and look at the list again. I can see the lower prices on my screen.

    “Middle Valdosta (I75/US84 interchange) $2.24/2.19/2.09/2.07″

    This was common in both Valdosta and Brunswick. Prices seem to be lower only at interstate interchanges. My guess is that the volumes are so much higher at those stations than a typical metropolitan or rural station that they get a break on their wholesale price and can sell at a discounted price.

    I didn’t see you sitting next to me, what did I “fail” to report?

    Comment by Iron Man — November 4, 2005 @ 3:37 pm
  37. Nothing, Ironman, You’re the greatest. My fault. Sorry.
    You have a nice weekend and nope–I wasn’t sitting next
    to you, I was here working in Bainbridge putting your
    tax dollars to work.

    Comment by TBI — November 4, 2005 @ 5:44 pm
  38. I have been working in Albany for the past eight years.
    During my cummute there i have never seen the gas cheaper
    in Bainbridge than Albany until two weeks ago. For about
    three days it was ten cents cheaper there than here but
    once again it is about tweelve cents higher here than there
    as always.

    Comment by badboybusted — November 4, 2005 @ 6:00 pm
  39. Hey TBI, I am far from the greatest. I felt, probably wrongly, that you were accusing me of lying and I got a little rankled. I apologize for that. I wish you too a woderful weekend.

    Comment by Iron Man — November 4, 2005 @ 6:24 pm
  40. The shell station on Mock & Moultrie road is an
    inland. I can almost promise you that.

    ~Now there’s a nerve, “People want to know that you are FROM here or either they want to know your family is FROM here.” You can bank on that. Not the friendliest town to move to. Hmmm, wonder if that has any bearing on bringing business to Bainbridge also~

    I’m not “from” here either. I have met many ppl in my
    job. I even met one couple that moved here after the
    husband found it (Bainbridge) on the internet. One couple I
    met moved her because it is close to Tallahassee where
    her retired parents live. But honestly, I have met more retired ppl
    moving here that younger “working” ppl. Just an observation.

    Comment by working_mom — November 6, 2005 @ 3:59 am
  41. “But honestly, I have met more retired ppl
    moving here that younger “working” ppl. Just an observation.”

    This is true. Bainbridge is a nice place for those of that inclination and who are ready to get out of the “hustle & bustle” of life in a metro area. However, this seems to be the exact reason that the younger crowd (for the most part) is not attracted to the area. And then there are those in the middle, like me, of which through job or family obligations, are stuck here.

    Comment by Adjudicator — November 6, 2005 @ 9:20 am
  42. BTW… Gas prices in Valdosta (NEAR I-75 & US-84 interchange) WAS $2.04 per gallon as of this past Thursday.

    Comment by Adjudicator — November 6, 2005 @ 9:26 am
  43. GAs in Macon is $1.98–I just wonder how long it will
    be before we see gas prices get below $2.00 in
    Bainbridge. Can we take bets on this question? But it
    is a ” Free Market”.

    Comment by TBI — November 7, 2005 @ 12:30 pm
  44. I went out of town last weekend and filled up with gas
    because I was so excited it had gone down like it did,
    but around Byron, GA–we filled up for gas for $1.89.
    I know there are reasons why the gas is high in this
    area–but as a consumer, I still don’t understand why
    it is .20 a gallon more.

    Comment by TBI — November 23, 2005 @ 3:02 pm

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