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Settlement in gas price-gouging probe tops $100,000

January 22, 2009 | | Comments 9
Attorney General Jack Conway

Attorney General Jack Conway

FRANKFORT — Eight retail gasoline stations will pay the state more than $100,000 as part of a settlement in the gas price-gouging investigation that occurred in the wake of Hurricane Ike last September, Attorney General Jack Conway said Thursday.

Conway said five of the stations are owned by Pilot Travel Centers, LLC, which will pay $100,000 in the settlement.  They are located in Corbin, Williamsburg, Middlesboro, Franklin and Oak Grove.

Krunal, LLC, which owns the T-Mart in Franklin in Simpson County, has agreed to pay $5,000 and Mike and David #2, Inc., which owns the T-Mart in Wingo, will pay $2,500.

Conway declined to identify the eighth station until the settlement has been finalized. That is expected to occur later today and it will pay a nominal amount, he said.

The attorney general stressed that the fines are not an admission of wrongdoing or guilt and that all the stations have denied any wrongdoing.

Most of the settlement money will go into the state’s General Fund after his office is reimbursed for investigative costs, Conway said.

Conway, during a news conference in the Capitol, also said the investigation of wholesale prices of gasoline in Louisville, which started last July, is ongoing.

Attending the news conference with Conway were Gov. Steve Beshear, House Speaker Greg Stumbo, D-Prestonsburg, and Rep. Tommy Thompson, D-Owensboro. Stumbo and Thompson were instrumental in the passage of a state law that allows the attorney general to investigate price gouging.

–Jack Brammer

Filed Under: FeaturedGreg StumboJack ConwayState GovernmentSteve Beshear

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  1. Jennifer says:

    So, how much did this investigation cost the taxpayers? I’m going to guess it was well over the $100,000 they are getting back. Which means the people of Kentucky had to pay for the high gas price and again for the investigation that ended up costing the state money in the long run. What a joke!

  2. charles lee says:

    They need to investigate now at $2.89 a gallon when oil is selling at $33.oo a barrel.

  3. Pappy says:

    The state of crappy kentucky, I hate thease crooked people.

  4. lent says:

    jennifer sounds like you own a gas station!

  5. skyhawk says:

    Why is the state getting the money when it was the consumers who were ripped off?

  6. Jennifer says:

    Lent, I don’t own a gas station dumb a**. I was saying that it’s rediculous that the state probably paid well over the $100,000 in taxpayer money to get that piddly amount back. If all they are going to do is slap them on the wrist why should they bother. $100,000 is chump change to the gas companies that are having to pay it. All they have to do is raise the price a few cents per gallon and they’ve recovered the amount they are paying.

  7. thomas says:

    Folks this is what a Duke education will do for you. Conway takes fines from gas gougers, takes a cut, then gives the rest to the general fund. Why does anyone care if the Atty General ever does anything when the people who got screwed get nothing.
    Jack Conway: This is no way to become governor or senator or president.

  8. It's not the gouging, it's the collusion says:

    What Conway really needs to do is probe why every gas station in a certain area of town (a block, a street, an intersection or interchange) has its prices the same or within a couple of cents of each other. I can understand why everyone else lowers prices when one does, but why does everyone raise their prices when one station does? It reeks of collusion and there has never — NEVER — I say NEVER been a satisfactory answer to that question.

    If Conway won’t investigate the collusion, this would be a good story for the H-L’s crack investigative team to look into. Gas price collusion affects a whole lot more people than someone at the airport hiring their kids or cousins for part-time jobs.

  9. Thunder Storm says:

    Conway said they only prosecuted stations that gouged for 6 days or more. Don’t you think the Pilot stations sold well over 100,000 gallons of gas during that period?

    The cost to litigate is not an issue because these lawyers are paid whether they sit on their bum or actually litigate.

    The real question is why did Conway puss out and settle. He had them dead to rights and settled for throw away money. They spend more than that getting their executives together for retreats. And they do not have to say they did it. They accept no guilt. This only happens to fat cats and their corporations.

    You never see Joe Six Pack, who is charged with a crime, get off without blame and only has to pay a small fine.

    This shows the weakness of Conway. Weak weak weak. Be a man and sue these gougers out of existence.

    I wish one friggin time an elected official would STAND UP FOR THE PEOPLE. ONE TIME PLEASE. I BEG YOU. ONE TIME!!!

    And finally, why does the state get to keep this money. Give it to a charity, United Way, food banks, anything but into state governments hands to be wasted on some fat cat payback project.

    Attorney General Jack Conway – Stand up for the people or you will never win another election. The blogoshere never forgets. NEVER!!!