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Fri January 23, 2009
Wingo gas station charged with price gouging
By Casey Northcutt
Murray, KY – Kentucky State Attorney General Jack Conway accused a Wingo gas station of using the September 2008 windstorm to gouge prices. In a press conference yesterday, he listed eight stations, including the Wingo T-Mart, that had drastically increased prices while the state recovered from wind damage. Those stations will now face legal consequences. Conway, however, says he carefully targeted business that had maintained these prices for a substantial amount of time.
"The normal profit margin is about 12 to 15 cents a gallon in the commonwealth of Kentucky. Well, in this instance, we saw some profit margins approaching a dollar. I wanted to make sure I didn't go after retailers that may have spiked for a day or two, but we were looking for grossly in excess margins that persisted for six days or more."
David # 2, Incorporated, the company that owns the Wingo gas station, agreed to pay 2,500 dollars in fines as part of a settlement, but the fines are not an admission of guilt. None of the eight stations have admitted to any wrongdoing.