Conway Accuses Marathon of Price Gouging

by Tony McVeigh on May 13, 2011

Kentucky Attorney General Jack Conway is accusing Marathon Petroleum Company of price gouging.

In a motion filed in Franklin Circuit Court, Conway alleges the oil company illegally raised the price of gasoline during a time of emergency.

Spokesperson Allison Martin says Conway believes Marathon has unlawfully increase gas prices since April, when Governor Steve Beshear declared a state of emergency in response to disasters created by severe weather conditions.

“People cannot raise the price of staples,” says Martin “Goods like gasoline, hotel rooms, construction supplies, anything like that, during an emergency unless there has been a rise in costs to the supplier.”

The attorney general’s office says Marathon’s recent price increases were unsupported by any cost increases. There was no immediate response from Marathon to the legal action, but a hearing is set for Monday morning in Franklin Circuit Court.

The motion is part of an ongoing case against Marathon for alleged price gouging in the wake of Hurricanes Katrina and Rita in 2005.

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