August 23, 2005
LANSING – Governor Jennifer M. Granholm today announced that her administration will increase gas pump inspections. The Governor has requested that Michigan Department of Agriculture (MDA) Director Mitch Irwin immediately transfer staff internally to increase inspections at gas stations. The Governor also announced that the MDA will use $1.3 million appropriated by the Legislature to hire additional inspectors.
“With the national and international markets for gasoline and oil soaring out of control and the federal government sitting passively on the sideline, no single state has the power to control gas prices. So we must make sure, at the very least, that we use the power we do have – to ensure that consumers are getting what they pay for – especially right now, when we are paying too much,” said Granholm. “We will increase inspections to ensure that gas station equipment is working properly and to ensure that every complaint receives a thorough investigation.”
In addition to increased inspections, the Governor called for legislation to require that gas station operators prove their pumps have been calibrated and are working properly when they apply for renewal of their operator’s license. State law requires that licenses are renewed annually.
Finally, the Governor said she is sending a letter to the federal Commodities Futures Trading Board requesting that they conduct an inquiry into all contributing factors in the recent price spikes, including any role speculators have played in driving the inflation-adjusted price of oil and gasoline toward historic high levels.
“With gasoline prices increasing at more than 10 times the general inflation rate over the past year, market participants at every level should welcome an immediate, aggressive and thorough review of all factors contributing to near record-high fuel prices,” Granholm wrote.
The Governor announced that the $1.3 million would be used to hire an additional 10 inspectors in the next 30 days and a total of 16 in the coming months. The additional staff will help MDA respond to a growing volume of consumer complaints. In the last two weeks alone, MDA has received over 75 complaints related to the purchase of gasoline.
“Increasing our inspection staff will allow us to double the number of gas stations and petroleum distributors that we inspect each year,” said Irwin. “That presence will help ensure customers that they are getting every penny in gasoline, diesel, and home heating fuel that they pay for.”
During their “May Day to Labor Day” Project last summer, MDA found that 29 percent of the state’s gas pumps failed to meet quality standards, including incorrect octane levels and sediment or water in the gas. An additional 12 percent failed to meet quantity standards meaning customers were paying for a different amount of gas than they received. As a result of the increased inspections, the number of fines issued more than doubled last year.
“Nearly 14 million gallons of gas are sold each day in Michigan,” said Granholm. “Getting shortchanged, even unintentionally in small amounts at the pump, adds up to real costs for Michigan families.”
Granholm did remind that most gas station operators are honorable members of Michigan’s businesses community. The increased inspectors will ensure not only that customers get what they pay for, but that those gas station dealers who would cheat the market don’t try to gain an unfair edge in the marketplace. Granholm urged all citizens to also remember that if they feel there is a problem with a gas station, they should contact the MDA at 1-800-MDA-FUEL or www.michigan.gov/gasprices, and not to deal with the problem themselves at the gas station.
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