Federal Trade Commission spokesman Mitchell Katz tells 2 On Your Side that the agency’s review of higher gas prices in Western New York is “a non-public inquiry”, and that they are not required to tell the public if the inquiry is over or if any action was taken.
So, we turned to Congressman Brian Higgins. He’s written letters to the FTC asking for an investigation into the disparity in gas prices here in Western New York.
Now, it’s confirmed. Gas prices in Western New York are higher than they should be, according to what the Federal Trade Commission told Congressman Brian Higgins.
In a statement released Wednesday evening, Higgins says “the FTC has indicated that gas prices in Western New York are 7 cents higher than the FTC would expect compared to 30 cents a month ago”.
Higgins calls it “significant progress” but says “we need to keep fighting to ensure that prices in our region are equitable.”
Two on your side has been tracking the disparity in gas prices for months.
Things were at their worst two months ago when, according to AAA, Buffalo had the highest average gas price in the continental United States. 11-07-2008
Buffalo $2.85
Syracuse $2.50
National Average $2.28 12-07-2008
Buffalo $2.18
Syracuse $1.94
National Average $1.71 01-07-2009
Buffalo $1.84
Syracuse $1.79
National Average $1.72
A month ago, it looked like part of the problem was record profits by gas stations.
Congressman Brian Higgins told us, back then, “The reason we have higher gas prices in Buffalo is because of excessive profit taking.”
Now, he says the FTC is now working with the State Attorney General’s Office on what is clearly a problem.
When 2 On Your Side’s Scott Brown traveled to Washington in November and was told by FTC official David Wales, “We are very motivated. Can’t give you a specific timeline but we will move very quickly to address this.”
Wales also said in Brown’s 11/26 report, “You know I guess what I would say is we see an anomaly. We’re going to look at it very closely. We can’t say what the causes are, to see whether there is legitimate market behavior that would not violate the law, or whether there’s something more sinister. But, we’re going to proceed very quickly to find the answer to that question.”
The agency’s probe was requested by Congressman Brian Higgins in late October after motorists complained that regional gas prices were much higher than the national average and even higher than the rest of the state.
FTC Public Affairs official Mitchell Katz says some of the information requested from businesses for their inquiry was confidential and cannot be shared with the public. He said the results of the probe may be passed on to Congress which can decide if it should be released.
2 On Your Side will continue to press for the investigation results from the FTC.
Higgins is the only area politician that gets things done for WNY on a national level. It’s a shame that the demographics of the state have him locked into his current position.
why do some stations give you a discount if you pay with cash and some with credit.
just in springville tuesday i saw one pump for $1.79, not even a quarter mile down a station for $1.69. i clearly stopped at the 1.69 station. paid cash then started pumping and found that i was paying $1.59 a gallon because i paid with cash. if thats the case, why does it matter what you pay with, why is the gas not that low to begin with?
It used to be you always paid more for credit, then the stations got sued and NY passed a law saying stations cannot charge a higher price for credit card purchases.
I’m pretty sure it’s only a matter of time before they get in trouble for this “cash discount” because really it’s the same thing as a credit card surcharge.
I looked into that for another thread… they can offer a lower price for cash if it’s clearly marked for both prices.
A gas station’s street sign can advertise the lower cash price without stating the higher credit price, as long as it says “cash” alongside the price, and as long as the prices for both credit and cash are displayed atop each pump.
The law states that while gas station owners may not charge more for credit card use, they can discount cash purchases, said Richard Russ, assistant director of the Bureau of Weights and Measures in the Nassau executive’s Consumer Affairs Office.
:word: It amkes sense to me. They have to pay the credit card companies for the ability to use their cards, so in doing so, it cuts into their profits. If they give a small price break to people paying cash, it reduces the amount they have to pay for credit card use. Nothing wrong with that.
Like I said, it won’t be long and that law will be revised to include “discount for cash”. The whole point of the law, if you read up on it, was that credit cards are supposed to be honored just like cash anywhere cards are accepted. You don’t see “cash discounts” at restaurants, retail stores or pretty much anywhere else cards are accepted.
