By Trent Moore
HOLLY POND — Jet Pep General Manager Chuck Moore said reports of price gouging at Jet Pep stations are unfounded, noting the reason for potentially higher prices is a more complicated issue than it may initially seem.
“When you try to explain it to a customer over the phone, sometimes it’s hard for them to take in,” he said.
Moore explained that independent companies such as Jet Pep purchase fuel on what is called the “spot market,” which means they purchase surplus fuel from refineries.
“It’s the excess of refineries not sold at their own (stations) ... normally at a lower price,” he said. This is why Jet Pep fuel is normally less expensive than major stations, such as Texaco or Chevron.
With the threat of a possible gas shortage caused by Hurricane Ike, and some refineries in Texas being closed to weather the storm, Moore said the excess gas his company normally purchased at a discounted price was no longer available.
“In a time of panic, there is no excess,” he said.
When the prices suddenly rose due to the fear of a shortage, and with no excess fuel available, Moore said Jet Pep was forced to pay much higher prices to ensure the stations remained stocked with gasoline.
“When that is the only way to get the product, it’s the only way to get it,” he said.
A handful of price gouging complaints were made against Jet Pep locations in the Cullman area, due to prices as high as $4.65 for a gallon of regular gasoline during the past week.
With a state of emergency currently declared in Alabama, price gouging laws went into effect Sept. 12. This is to prevent companies from charging “unconscionable” prices for fuel. What exactly is deemed unconscionable is at the discretion of the State of Alabama Attorney General’s Office.
By Trent Moore
- Top News
Arrests, incidents reports for July 25-27, 2014
Here is a look at the incidents that were reported to the Cullman City Police Department for Friday, Saturday and Sunday:
Cullman airport board purchases $7 million liability plan
A new insurance policy is providing the Cullman Airport Board with a greater amount of liability coverage than in past years.
The Times' Morning Update for Monday, July 28, 2014
Good morning, readers, take a look at what’s going on today:
'Lives can change in an instant': Rally focuses on dangers of texting and driving
The family and friends of the late Jay Kendall celebrated his 59th birthday today by raising awareness about the dangers of distracted driving and the issues law enforcement face trying to prevent it.
Amateur radio operators descend on Civic Center for annual Hamfest
The nearly-full parking lot at the Cullman Civic Center was filled with cars Saturday, many of which were sporting multiple two- and three-foot-long antennas.
Gap in campaign finance does not decide House race
Education groups and attempts by political action committees (PACs) to preserve Republican incumbents in the state House of Representatives dominated the financing of the recent District 12 race.
Candidates for sheriff gathered more than $200,000 for race
Now that the dust surrounding the hotly-contested Cullman County Sherrif’s election has settled, the Republican primary runoff candidates have submitted their final campaign finance reports.
Texting and Driving Awareness Rally coming Sunday
This Sunday from 7-9 p.m., the front of the Cullman County Courthouse will be the site of a rally to prevent texting and driving in memory of the late Vinemont postmaster Jay Kendall.
County schools superintendent Craig Ross discusses hopes for school year
Craig Ross looked like a man of action during the Cullman Chamber luncheon at the All-Steak Friday.
Doors, taillight swiped off vehicle at Bremen Motors
“That’s a new one," dealer says after rest of car is left intact
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- Arrests, incidents reports for July 25-27, 2014