Office of the Attorney General
Attorney General Conway Cautions Kentucky Petroleum Marketers

Attorney General Jack Conway has cautioned Kentucky petroleum marketers that if they are selling conventional gasoline rather than reformulated gasoline (RFG) their price should reflect the cheaper cost.  In a letter sent to the Kentucky Petroleum Marketers Association on September 18, General Conway reiterated that the price gouging statute implemented by the Governor’s September 12 declaration prohibits sales of gasoline at “a price which is grossly in excess of the price prior to the emergency declaration and unrelated to any increased cost to the seller.”

As a result of a perceived shortage after Hurricane Ike hit the Gulf Coast, the Federal Environmental Protection Agency (EPA) was requested and agreed to allow Kentucky marketers in the Louisville and Northern Kentucky markets to offer conventional gasoline for purchase. Since it now appears reformulated gasoline will not be in short supply, General Conway cautioned that based on an EPA clarification following the waiver, if RFG is available to retailers, they should acquire and offer RFG for sale.  If RFG cannot be acquired, then the waiver authorizes the retailer to offer conventional gas for sale.

“If retailers are selling conventional gas which is cheaper to purchase, then their prices should reflect that. If we find there are exorbitant profits at the retail level we’ll take the appropriate action under the Price Gouging statute, which includes both restitution, a $5,000 fine per transaction and $10,000 fine for subsequent offenses,” said General Conway.

Link to letter to KY Petroleum Marketers