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Owners of the Circle B gas station in Fayetteville and five Big D gas stations in Murphy, Marble and Hayesville will repay consumers thousands of dollars for overpriced gas, Attorney General Roy Cooper said Monday.
"When families are struggling to make ends meet, the last thing they need is to be gouged at the pump," Cooper said in a press release. "These stations are making things right for consumers and other stations should do the same."
Cooper also filed suit Monday against Steve Compton, owner and manager of Tire Pro, also known as Troy BP, located at 104 Courthouse Square in Troy. The complaint alleges that Tire Pro/Troy BP raised its prices on September 12 to $5.98 per gallon, meaning that its profits rose from about 14 cents per gallon of gas sold to at least $2.23 cents per gallon. Cooper is asking the court to order the company to pay refunds to consumers and civil penalties to the state.
Cooper began investigating possible price gouging by North Carolina gas stations after thousands of consumer complaints started pouring into his office on Sept. 12. North Carolina's law against price gouging was triggered that day by the declaration of an abnormal market disruption due to Hurricane Ike striking the Gulf Coast.
According to Cooper, the Circle B gas station located at 101 South McPherson Church Road in Fayetteville marked up its prices from $3.99 to $5.49 per gallon on Sept. 12. This means that Circle B overcharged consumers by more than $1,000 between 2 p.m. and 7 p.m. on Sept. 12 when it charged as much as $5.49 per gallon for gas.
Under an agreement signed by Circle B president Dilip K. Gala, the gas station will refund $1.50 per gallon to consumers who bought gas by credit card during the relevant period. The refunds will appear as credits to consumers' credit cards. Consumers who paid cash have 30 days to present a receipt or other proof of purchase to the station for a refund. The company will also pay $5,000 in civil penalties to the state, which goes to North Carolina schools.
Big D operates five gas stations at locations in Murphy, Marble and Hayesville. Cooper contends that Big D stations overcharged consumers $2,320 on Sept. 12 and 13, marking up gas sold at its stations to $4.99 per gallon.
Under an agreement signed by Big D president Samuel W. Duncan, Sr., Big D will refund to consumers who paid by credit card the amount they were overcharged on September 12 and 13. The exact amount of refunds, which will appear as credits to consumers' credit cards, will vary depending on which grade of gasoline they purchased and from which Big D gas station. Consumers who paid cash have 30 days to present a receipt or other proof of purchase to the station for a refund. Big D will also pay $10,000 in civil penalties.
Both companies must provide the Attorney General's Office with a sworn accounting of all refunds they make to consumers. Any amount that is unable to be returned to consumers will go to a special fund to provide energy assistance to people in Cumberland, Cherokee and Clay counties.
Cooper's office has issued subpoenas to owners of 23 gas stations, including the owners of Circle B, Big D and Tire Pro/Troy BP. Cooper subpoenaed gas stations in Anson, Ashe, Buncombe, Cherokee, Clay, Craven, Cumberland, Guilford, Iredell, McDowell, Montgomery, Stanley, Transylvania and Yadkin counties as part of his investigation, which is continuing.
Price gouging-or charging unreasonably excessive prices in times of crisis-violates North Carolina General Statute 75-38, when a disaster, an emergency or an abnormal market disruption for critical goods and services is declared or proclaimed by the Governor. The price gouging law, which Cooper helped strengthen in 2006, applies to all levels of the supply chain.
"We put our price gouging law in place not only to punish wrongdoers, but also to serve as a deterrent," Cooper said. "Consumers are our eyes and ears out there, and we appreciate their help spotting and reporting possible gouging."
Consumers can report suspected price gouging to the Attorney General's Office by visiting www.ncdoj.gov to fill out a price gouging complaint form or by calling 1-877-5-NO-SCAM toll-free within North Carolina.

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