FOR IMMEDIATE RELEASE

December 20, 2005
Contact: Barbara LoMoriello, Legislative Aide -- #(631) 854-4500

FILL’ER UP? NOT SO FAST!
Cooper Law Protects Drivers from Getting Ripped Off at the Pump

At the final 2005 meeting of the Suffolk County Legislature yesterday, lawmakers voted unanimously to approve a resolution championed by Legislator Jon Cooper (D-Huntington) that will prevent drivers in Suffolk County from being ripped off when they stop at a gas station to "fill ’er up."

Gas gouging is a national problem that was brought home to millions of American drivers in the aftermath of the most horrific hurricane season on record. Long Islanders watched the evening news this fall and saw their storm-ravaged and weather-weary southern neighbors forced to wait for hours in mile-long lines while unscrupulous service stations pumped up the price of gasoline to take advantage of market shortages. Drivers have been waiting in vain for Washington to muster the political courage to take on Big Oil and demand that the industry’s corporate officers stop lining their pockets with the hard-earned dollars of Americans who are trying to pick up the pieces of their tattered lives in the wake of these national disasters.

Just this week, after a three-month investigation following the 2005 hurricane season, New York State Attorney General Elliot Spitzer found that 15 gas stations in New York—including two on Long Island—had charged excessive markups.

Cooper’s new law will prohibit gasoline service stations from unfairly increasing their prices at the pump more than once a day. This same prohibition will also apply to wholesale motor fuel distributors.

"As a parent of five kids all moving in different directions at once, I know how increasing gas costs can cut into a family’s budget," says Cooper. "As a businessman, I also know the difference between making a profit and profiteering. I’m confident this law will protect families from being preyed upon while still allowing honest gas stations to stay in business."

Everybody knows that earlier this year ExxonMobil posted a quarterly profit of $9.9 billion—the largest in U.S. corporate history—on the back of record oil and gas prices. Company profits were up 75% and revenue rose 32% to more than $100 billion. These figures, while hard for most Americans to even comprehend, are not a new trend for Big Oil. In 2004, the 10 largest oil companies had sales of more than $1 trillion, with profits of more than $100 billion.

Understanding that corner gas stations—especially in Long Island’s sprawling suburbs—are as much a part of the communities they service as are the local delis in every neighborhood, Cooper was careful to include language in his resolution that would allow honest vendors to still make a living in these times of skyrocketing prices and fierce competition. The problem for gas stations is that to make even a small profit by selling gasoline, they must set their prices at razor thin margins. If they set their price too low, they will sell their fuel at a loss. Therefore, Cooper’s bill creates an exemption for vendors who can provide written proof that the wholesale price they paid for fuel also was increased.

Realizing that bad vendors are bad for everybody, the Long Island Gasoline Retailers Association (LIGRA)—which represents hundreds of service stations in Suffolk County—has even voiced their support for Cooper’s legislation. LIGRA’s executive director Kathryn Odessa said, "This resolution will hinder illegitimate retailers from cheating the public while allowing legitimate retailers to remain viable."

Suffolk County Executive Steve Levy is expected to sign Cooper’s bill into law next month.