At Issue & In Focus

Gas Prices on the Rise

As most consumers have noticed, gas prices are on the rise. Many factors contribute to the increases we see at the pump, including major world events. We know that high gas prices continue to impact families and businesses, but that rising gas prices alone, however, are not necessarily an indication that gas station retailers are engaging in unlawful conduct.

The Attorney General’s Office is committed to providing consumers helpful information, and to fighting higher gasoline prices if those price increases violate the law.

Here’s some basic, helpful information to help you deal with rising prices:

Unlawful practices: It is unlawful for companies to collude to raise prices or to take advantage of market emergencies, such as hurricanes or other severe storms, to charge unconscionably high prices. If you have concerns or evidence of collusion or price gouging, please contact us at 617-727-8400, or file a complaint online.

Credit v. Cash at the Pump: Consumers should be aware that stations can charge different prices for using cash to pay versus using a credit/debit card. Massachusetts law, MGL c. 140D § 28A, allows gas stations to discount their price for consumers paying with cash.  The gas station should be advertising the higher price.  If a discount is offered for cash sales, the word “cash” must be included in the applicable portion of the sign.  You can read more about guidelines for signage of the cash sale option. If you have concerns or evidence of discrepancies in prices, please contact us at 617-727-8400, or file a complaint online.

Educate Yourself: You can research gas prices before filling up your tank. Various websites and smartphone apps are available to help you identify rates at service stations near you. Some of the information is provided by other users who are on the lookout for their fellow commuters. While we’re not responsible for the content of any of the links below, you may find them useful:

 

Websites:

Massachusetts Gas Prices
Fueleconomy.gov
AAA Fuel Gauge Report
MapQuest Gas Prices

 

Smartphone Apps:

GasBuddy Mobile Apps (various platforms)
AAA TripTik (iPhone) 
FuelFinder (iPhone) 
Gasbot (Android and Blackberry)

 

FAQs about Gas Prices

As prices at the gas pump continue to rise, the Attorney General’s Office is committed to providing consumers helpful information.  AG Coakley has issued an advisory to consumers on gas prices, and offers the below answers to frequently asked questions. 

The Office of the Attorney General intends to monitor compliance with the regulations governing the retail advertising and sale of gasoline and will enforce these regulations against any noncompliant retailers.  AG Coakley asks drivers with allegations of unlawful behavior regarding gas prices to contact her office’s consumer hotline at (617) 727-8400. 

 

How can I shop around for the lowest gas price in my area, without driving around and wasting gas?

Various websites and smartphone applications are available to help you identify rates at service stations near you. See above for a sample of some of the options available.

 

Is it legal for oil companies and gas stations to keep increasing their prices? 

The United States has long embraced a free market economy.  Free market principles, such as supply and demand, establish the price for most goods and services, including gasoline.  The government—state or federal—does not set the price for gasoline.  A large number of factors determine how gas producers, refiners, wholesalers and retailers set their prices.  Those prices are then subject, in a free market economy, to competition from other businesses.

Rising gas prices alone are not evidence of illegal or improper conduct by gas retailers. It is, however, unlawful for companies to collude to raise prices, such as an explicit agreement among competitors to raise or fix prices.  In addition, in cases where a market emergency exists, such as in the event of a natural disaster or world conflict, it is illegal for a company to take advantage of that emergency by charging unconscionably high prices—which constitutes “price gouging.” 

 

What factors influence gasoline prices?

Factors range from the costs of exploring for oil and extracting it from the earth, to the costs of refining oil into gasoline, shipping oil or gasoline from around the world to major distribution hubs, transporting gasoline from refineries to local retailers, to making it available at your local gas station or convenience store.  Supply and demand factors influence prices at every level of production and distribution, including events across the globe that may affect supply. In 2007, Attorney General Martha Coakley and several other Northeast States commissioned a report on the structure of petroleum markets in the Northeast, including factors that influence how gasoline prices are set.  For detailed information you can review the Report on Petroleum Products Markets in the Northeast.  This Report was prepared in 2007 for Attorney General Coakley as well as the Attorneys General of Maine, New Hampshire, New York and Vermont.

 

Is there a law which requires gas stations to accurately display their prices for gas?

Yes.  Pursuant to G.L. c. 94, section 295E, no retail dealer may sell motor fuel at any price other than the price posted at the pump at the time of the sale.

 

A local station charges a lower price for cash only purchases.  Is this legal?

Massachusetts law (G.L. c. 140D § 28A) allows gas stations to discount their prices for consumers paying with cash.  However, the gas station should be advertising the higher credit price clearly and conspicuously in its signage.  If a discount is offered for cash sales, the words “cash” should be included in the applicable portion of the signs.  When “cash” sales and other types of sales are made from the same dispenser, both prices must be posted and clearly labeled with the type of sale the price refers. i.e. “cash”, “credit”, “credit/debit”.  You can read more about guidelines for signage of the cash sale option at http://www.mass.gov/Eoca/docs/dos/202CMR2%2000final_clean.pdf. 

 

What types of conduct would violate the antitrust laws?

Price-fixing and other forms of collusion violate the antitrust laws.  Price-fixing includes an explicit agreement among competitors to raise, fix, or otherwise maintain the price at which their goods or services, including gasoline, are sold to the detriment of either the competitive marketplace or consumers.  Consumers can help by alerting the Massachusetts Attorney General’s Office if they know of any efforts by competing firms to fix or manipulate prices.  Business mergers and monopolistic practices that would result in reduced competition and harm to consumers may also violate the antitrust laws.  The Attorney General’s Office closely monitors proposed mergers to maintain competition.

 

If a “market emergency” existed due to a natural disaster or world conflict, what conduct would constitute “price gouging?”

A price may be deemed unconscionably high, and “price gouging,” if  the amount charged represented a gross disparity between the price of the petroleum product and 1) the price at which the same product was sold or offered for sale by the petroleum-related business in the usual course of business immediately prior to the onset of the market emergency, or 2) the price at which the same or similar petroleum product is readily obtainable by other buyers in the trade area; provided that the disparity is not substantially attributable to increased prices charged by the petroleum-related business suppliers or increased costs due to an abnormal market disruption.

As the last leaves fall and winter approaches

As the last leaves fall and winter quickly approaches, many residents of the Commonwealth will struggle to heat their homes throughout the winter.  The Massachusetts Winter Moratorium, in place between November 15 and March 15, prevents Massachusetts utility companies from terminating heat service due to a resident’s inability to pay.  However, residents are still responsible for payment during this time and this moratorium does not apply if service was shut off due to nonpayment prior to November 15th.  Furthermore, utility providers cannot shut off the heat service of people in special situations at any time of year, including those who are elderly, low-income families with infants, and people with serious illnesses who cannot pay their bills.  The AGO’s Public Inquiry & Assistance Center may be able to help mediate in the case of a shut off or to help with a payment plan.  You can also contact your local Community Action Program for assistance.

Summer Energy-Savings Ideas

It's time to make sure you're ready for hot weather and think about any energy-saving steps you can take now to both reduce your energy use this summer and also save money over the long term.

Cooling Systems:

• If you have central air conditioning, keep your thermostat at 78 degrees and change the filters frequently for maximum efficiency.
• Consider installing a ceiling fan or a whole-house fan. A ceiling fan will create a cool breeze and keep the air circulating in your home and a whole-house fan will push hot air out of the attic area.
• Close blinds, drapes and shades during the hottest part of the day to keep strong sunlight from heating your home.

Cooking and Appliances:

• Use your microwave or countertop appliances for cooking instead of the oven or stove or fire up the outdoor grill.
• Keep a full fridge. Having lots of food in your fridge keeps it from warming up too fast when the door is open.
• Turn off appliances, lights and equipment when not in use.
• Postpone laundry and dishwashing until nighttime to avoid use during peak hours.
• Set your dishwasher to have dishes air dry and consider taking advantage of the warmer air and dry your laundry outside.

Your Car:

• Get your car ready for summer and any vacations by keeping tires properly inflated.
• Drive Less! Combine errands, use public transit, bicycle and walk when possible.
• Drive the posted speed limit or the minimum allowed.
• Consider using air conditioning only when traveling at 40 mph or faster – for speeds under 40 mph - you will use less fuel by simply opening car windows.
• Avoid car idling.
• For more tips on saving energy and money, visit EnergySavers.gov.

The Great Outdoors

Are you still trying to live up to your New Year’s resolution to get in shape in 2010, but having a hard time getting motivated? Springtime in Massachusetts provides a wealth of inexpensive opportunities for individuals and families to get some exercise and enjoy the outdoors. Whether you prefer the land or the sea, the beach or the hills, you can find plenty of opportunities for a workout outdoors.

You will not only find this beneficial for your health, but your wallet as well. You can avoid the costs associated with a health club or even expensive family entertainment. Spending free time outdoors also allows you the opportunity to turn off the television and the computer and cut back on your personal energy usage. Leave the car keys at home and save on gas. You can find suitable entertainment within biking distance of almost anywhere, or maybe your bike ride is the entertainment.

To learn more about what is happening in Massachusetts Great Outdoors, you can also check out the Executive Office of Energy and Environmental Affairs.

Going Green May Net Some Green

When you invest in energy-efficient products or make energy efficient improvements to your home, you not only will be saving money on your energy bills, you may also see some green when you file your taxes.

The Internal Revenue Service (IRS) website lists six energy-related tax credits created or expanded by the American Recovery and Reinvestment Act of 2009.

Some Examples:

• Homeowners who make energy efficient improvements to their existing homes can receive a credit of 30 percent of the cost, up to $1,500.
• Recent car buyers who purchased a hybrid, fuel cell, alternative fuel or advanced lean-burn technology vehicle, you may qualify for a tax credit of up to $7,500.

To learn more, check out the IRS website.

Gas to Reach $3 a Gallon by Summer?

According to a recent article in the Boston Globe, gasoline pump prices hit a 17-month high on Monday and may reach $3 a gallon by the summer.  A year ago, prices were at $2 a gallon.
As we near the 40th Anniversary of Earth Day next month, we are reminded that we can all take steps to make every day Earth Day by reducing our gasoline consumption and helping our budgets while also doing our part for the environment.

Some Ideas from the Executive Office of Transportation and Public Works:

• Drive Less! Combine errands, use public transit, bicycle and walk when possible
• Drive the posted speed limit or the minimum allowed
• Consider using air conditioning only when traveling at 40 mph or faster (less than 40 mph you use less fuel by simply opening car windows)
• Keep tires properly inflated
• Avoid car idling

For more gas-saving ideas, check out the EOT’s “Mass Attack on Fuelishness” webpage

2-1-1

Contributed by Meghan Keaney, Communications Director, United Way of Massachusetts Bay and Merrimack Valley

Do you know someone who may need help with their utilities or other basic needs this winter? Tell them to dial 2-1-1 from any home or cell phone. 

The United Way has been seeing more and more residents who have been caught off-guard by the unstable economy – individuals who have jobs but still can’t make ends meet under a sharply rising cost of living. Last year, in an effort to ensure that individuals and families in unexpected financial crisis have somewhere to turn for help, United Ways across the state came together to launch the Community Support Fund, which provides direct emergency assistance for basic needs.

Mass211 is a free and confidential help line to connect people to health and human services. Individuals who need cash assistance for heat, food or other basic needs can access our Community Support Fund by dialing 2-1-1.  Data for 2009 reveals that Mass211 received over 46,000 calls with the majority coming from Boston, Brockton, Lynn, Springfield and Worcester. The overwhelming majority of calls were regarding assistance with basic needs such as rent, utilities, and food. The United Way would also like to encourage people to use 2-1-1 as a resource during tax time, to help residents find free tax filing sites and determine eligibility for EITC.  Notably, people can also use 2-1-1 to find organizations accepting donations for the Haiti Earthquake Recovery effort.

Elders and Utility Shut-Off

Do you regularly check-in on the elders in your family or neighborhood? Are you worried they are having trouble affording to stay warm this winter?

As the temperatures drop into the teens and single digits, it is a good time to remember that senior citizens are particularly vulnerable to hypothermia and, because of that, households where everyone in the home is age 65 or older are protected from utility shut-offs (gas, electricity and landline telephone) at this time of year, regardless of ability to pay.

In order to receive this shut-off protection, elders must contact their local utility who will send them the appropriate form(s) to fill out.

For more information about utility shut-off protection, and to find resources for heating assistance, go to the Massachusetts Department of Public Utilities website or call them at (617) 737-2836 or 1-877-886-5066.

Go Green for the Holidays

Decorating for the holidays? Why not make some greener decorating and entertaining choices that also help to keep our planet healthier and help you save money? Here are a few suggestions to get you started.

• Consider trading in your conventional holiday lights for Light Emitting Diodes (LEDs) this year. LEDs have multiple benefits and can save you money in the long run. Consumer Reports notes that LED lights use a fraction of the energy that conventional lights use and they last much longer so they can be used for many holidays to come. Since LEDs contain mercury, it is important to always to dispose of LEDs to a mercury recycling center once they have outlived their useful life.
• Think lasting, not disposable. Paper holiday napkins, placemats and tablecloths offer convenience, but waste resources. By investing in attractive, more environmentally responsible alternatives, you help save trees, avoid the need for repeat shopping trips to restock your supplies and – over the long term – can actually save money too.
• Decorate with edibles you can enjoy later. Bowls of nuts or fruits, colorful squash, pomegranates, whole pineapples and more can create a festive look that’s later useful – and healthful – as well.
• Reuse last year’s holiday items to dress up this year’s celebrations. Cut up old greeting cards to use as gift tags or place cards, tape the front of old cards to inexpensive, plain-color gift bags, reuse old wrapping paper, add fresh double-sided tape or glue to make last year’s ribbons and bows sticky again, or frame your favorite greeting cards to hang on your walls as holiday accents.

Enjoy, and have a happy, healthy, green holiday!

Keep Warm, Keep Safe This Winter

State Fire Marshal Stephen Coan and all the members of the Massachusetts fire service remind our readers that heating is the second leading cause of home fires in Massachusetts and prevention is the key to keeping warm and safe this heating season.

Furnaces and chimneys should be checked by a professional every year before the start of the heating season and wood, pellet and coal stoves require a permit from the local building inspector to ensure they are installed safely and properly.

Space heaters can provide a little extra warmth in a cold or drafty corner or shop, but are not designed to replace household heating systems and the use of extension cords with space heaters is known to cause electrical fires.

For more fire safety basics, and to learn more about the Keep Warm, Keep Safe Campaign for Massachusetts, please visit the Department of Fire Service’s website or call the Public Fire Safety Education Hotline at 1-877-9 NO- FIRE (1-877-966-3473).