November 18, 2004 - Michigan Department of Agriculture (MDA) Director Dan Wyant, today released the final report of gasoline inspections conducted as part of a special project, titled “May Day to Labor Day.” The project was developed to answer Governor Jennifer M. Granholm’s call for increased gasoline monitoring during this summer’s peak driving season.

Initial Department goals aimed for a 20-percent increase, but inspectors surpassed this, monitoring 953 gas stations compared to 723 in the same time period last year, a 30-percent increase. Inspectors found that 29 percent of gasoline tested failed to meet quality standards, which includes testing octane levels, sediment and water in the gas. Inspectors also found that 12 percent of the stations tested fell short of gas quantity standards.

“This increased inspection effort is just another example of our Administration’s dedication to ensuring Michigan consumers are getting their money’s worth at the pump,” said Granholm. “As gas prices continue to fluctuate, we will remain vigilant in monitoring and inspecting gas stations in order to protect citizens from being taken advantage of.” 

From the inspection results, 50 fines/consent agreements were issued, with the rest of locations being warned that they were in violation of quantity or quality laws. There are still five open investigations for quality violations awaiting final testing analysis and action. The vast majority of violations do not appear intentional, but due to improper upkeep and maintenance of devices.

“Protecting consumers and assuring fairness in the marketplace are among our top priorities,” Wyant said. “This inspection effort indicates substantial violations of both gasoline quality and quantity standards. We will continue to work hard resolving this problem and increasing compliance.”

In addition to the special project inspections, MDA inspectors responded to 511 consumer complaints over this same time period. Of these, 399 were regarding quantity with 17 percent substantiated, and 112 were on quality with 23 percent substantiated.

Last year, the Governor issued Executive Directive 2003-6 which charged the MDA and the Michigan Public Service Commission with tracking gasoline prices to help ensure Michigan families pay a fair price for gasoline and to refer any information about potential energy shortfalls to the energy advisory committee.

While serving as Attorney General, Granholm was vigilant about taking action against service station dealers who increased their prices following the September 11 attacks on the World Trade Center and Pentagon. Granholm took action against 48 gas stations. The stations were required to refund more than $100,000 in overcharges to customers and to pay approximately $30,000 in civil penalties, which went to the General Fund.

MDA is the state agency responsible for regulating gasoline sold in Michigan for quality and quantity standards. The Department conducts various types of routine, complaint and undercover
inspections at the state’s 5,100-plus licensed retail gas stations. About five billion gallons of gas are sold in Michigan annually, ranking the state 7th nationally in gasoline consumption.

Any consumer suspecting they may have received adulterated fuel or an incorrect amount should call and report it as soon as possible to the Department’s toll-free hotline at 800/MDA-FUEL (800/632-3835), which must be posted on every gasoline pump in the state.

Motorists seeking more information can visit www.michigan.gov/gasprices, which provides a clearinghouse of information on gasoline-related issues, from an online gasoline gouging complaint form and consumer tips on buying gasoline and fuel-efficient driving to a searchable database for the most recent average gasoline prices by city or zip code.

• May Day to Labor Day Project Report