Moldy Peaches

The State of New Jersey, always progressive in pushing for consumer and individual rights, has launched a lawsuit against three oil companies and several gas stations for allegedly gouging consumers during Hurricane Katrina.

The lawsuits accuse Hess, Motiva Shell and Sunoco with artificially inflating gas prices and for increasing prices more than the once-a-day legal limit. Independent gas station operators selling Hess, Shell, Sunoco and Citgo brands were also sued.

The civil action is believed to be the first in the U.S. responding to recent rising gasoline prices.

It is about time that some jurisdiction took legal action against oil companies since price gouging and fixing has been going on for far too long. In Canada, the price of gas has increased as much as 25 to 30 percent in a single week even as the price of a barrel of crude oil remains relatively stable - high, but still stable. In fact, the price of gas shot up almost 100 percent - to over $2.25 per litre - at some stations, temporarily, in Central and Atlantic Canada recently for no reason.

It will be interesting to see if any Canadian jurisdiction has the courage to launch such a suit. It is doubtful, instead the country will see the Conservatives push for a gas tax reduction (justifiable) and the other parties clamour to cut cheques to low-income earners to reduce the so-called pain.

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