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State Task Force Will Monitor Excessive Gasoline Hikes

New York State Consumer Protection Board (CPB) Chairperson Teresa A. Santiago, New York State Attorney General Eliot Spitzer and Department Environmental Conservation (DEC) Commissioner Erin Crotty this week announced the creation of a Gasoline Price Stability Task Force to monitor the retail price of gasoline.

The Clean Air Act requires the use of reformulated gasoline in regions of the country that have not yet met national air quality standards. The most common type of reformulated gasoline contains methyl tertiary-butyl ether (MTBE), which has been linked to contamination of drinking water and ground-water supplies. As a result, New York State banned MTBE effective January 1, 2004, requiring a change in the gasoline blend.

Together, the CPB, the Attorney General and the DEC will lead a multi-agency effort to protect consumer interests by monitoring the retail price of gasoline and investigating any allegation of gasoline price gouging or price fixing that may be falsely attributed to this change.

Attorney General Spitzer said, "Gasoline distributors and retailers should not use this changeover in the formulation of fuel to improperly profit at the expense of hard-working New Yorkers. My office will work closely with the state Consumer Protection Board and other state agencies to monitor this transition period and bring appropriate action against those who take unfair advantage of consumers."

Representatives of the Task Force will be meeting with representatives of the petroleum industry to discuss the implementation of the MTBE ban and the necessary transition, Chairperson Santiago said. The petroleum industry has been preparing for this changeover for several years.

Beginning January 1, 2004, the CPB will operate a toll-free telephone line (1-800-214-4372) and provide a complaint form on their website (www. nysconsumer.gov)for consumers to report possible instances of gasoline price gouging or price fixing. Such allegations will be promptly investigated by the CPB and may be referred to the Attorney General for enforcement.



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