April 07, 2004
April 7, 2004
LANSING – In anticipation of the upcoming summer travel season, Governor Jennifer M. Granholm is asking the Michigan Department of Agriculture (MDA) to step up its vigilance to make certain that Michigan consumers are not taken advantage of as the price of gas across the nation continues to climb upward.
"As the price of gas continues to spiral upward, we must ensure that consumers are not victimized by those few, unscrupulous players who would take advantage of the situation," Granholm said. "The vast majority of service stations in Michigan are small businesses who simply want to provide good service to their customers – we want to reinforce their good work by ensuring that a few unfair actions don’t give the entire industry a black eye."
Granholm today directed the Michigan Department of Agriculture to step up its enforcement of gas pump accuracy. The MDA ensures that pumps are accurate and that consumers are getting a full gallon of gas for every gallon they buy and that they receive the proper octane.
"Especially when the market is driving up the price of gas, consumers should be able to count on getting every drop of gas they buy," said Granholm. "We’re working in partnership with Michigan’s gas stations to protect our citizens’ pocketbooks and to make certain there is a level playing field for station owners to compete."
Granholm also announced that she joined other governors in pushing the federal government to investigate rapidly increasing gas prices.
"While we are going to be vigilant in protecting consumers, we are asking Washington to provide a complete and credible explanation on why prices have risen so significantly in the last several weeks," Granholm added.
The governors asked for a clear and precise explanation of spiraling gas prices and asked the President to direct Attorney General Ashcroft or another appropriate federal authority to conduct a prompt and thorough inquiry on the issue of gasoline prices.
"Because the recent price increases have a ripple effect on other critical components of our economy, it is important that the public have an accurate and straight-forward explanation for the causes of the recent price spikes. This is a significant national concern, and it deserves more than the traditional Washington political response of pointing fingers," the letter states.
Last year, the Governor issued Executive Directive 2003-6 which charged 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.
Average gas prices in Michigan are on pace to reach an all time high this summer. Michigan is experiencing average higher prices now than last August when the state had a major electrical blackout and lost production from its only major refinery for a number of days.
According to AAA Michigan, in January, the average price for a gallon of gas was $1.60. In March, it jumped to $1.72 per gallon, and the trend so far in April suggests a continuing up-swing in price with average price statewide as of April 5 reported at $1.79 per gallon. This suggests a potential 19 cent increase in gas prices in three months.
The current statewide average of $1.785 is 16.1 cents per gallon higher than last year’s average and sets a new record high for the month of April in Michigan, exceeding the earlier record of $1.746 on April 23, 2001.
Citizens are reminded that they can report gas gouging online at www.michigan.gov/gasprices and gasoline quantity and quality complaints or concerns by calling the state’s toll-free hotline at 1-800-MDA-FUEL.
