AGO accepting complaints vs gas price hikes

The Attorney General’s Office yesterday urged those who might have complaints about the high prices of gasoline to file a formal complaint with it, as the U.S. Department of Justice also assured that it would prosecute violation of consumer laws.

CNMI consumer counsel Brian Caldwell disclosed receiving communication from the Justice Department’s Antitrust Division, which renewed its commitment to investigate and prosecute criminal violations in connection with the national government’s gas price monitoring project.

Caldwell said that, while no probe is currently taking place regarding the possible commission of price gouging in the CNMI’s fuel industry, this does not mean that there would be no investigation in the future.

The consumer counsel earlier filed with the Federal Trade Commission a complaint lamenting high retail prices of Mobil’s gasoline on Saipan, adding that pump prices on Rota and Tinian are even higher. He sought the FTC’s assistance in ascertaining whether or not the oil firm has violated consumer laws, a matter which the company vehemently denied.

To date, he said the FTC has yet to respond to the complaint or provide information on any related development.

Caldwell said no complaint has been filed so far against Shell, which has also raised fuel prices several times this year. “I think everybody in the Commonwealth knows that the price of gas is high. But nobody has filed a complaint,” he said.

The AGO said complaints about gas prices could be sent by email to attorneygeneral@saipan.com or in writing to this address: Office of the Attorney General-Civil Division, Caller Box 10007, Capitol Hill, Saipan, MP96950.

Caldwell disclosed receiving a letter from U.S. Assistant Attorney General R. Hewitt Pate, who noted media reports and remarks by public officials about possible anticompetitive conduct in the fuel industry.

“As you know, the FTC leads federal efforts to investigate civil violations of the antitrust laws in the gasoline industry, such as those involving distribution practices,” Pate said. “The FTC refers to the DOJ any evidence of criminal wrongdoing uncovered in the course of its investigations.”

Pate said in a letter to state attorney generals to coordinate with his office any evidence that could warrant a criminal investigation.

Pate also urged the public who might have complaints about gas pricing to contact the DOJ’s Antitrust Division at 1-888-647-3258 or by email at newcase.atr@usdoj.gov.

Shell has raised retail fuel prices five times this year for a cumulative price adjustment of 25 cents per gallon. It first raised gallon prices by 7 cents in January, before increasing them again by 5 cents three times, and then 3 cents.

Shell stations on Saipan now peg regular and premium gasoline’s gallon prices at $2.429 and $2.529, respectively, at self-serve rate. Full-serve rates are slightly higher at $2.559 and $2.649. Shell also raised the gallon price of diesel by 5 cents on top of the previous $2.479 for a new rate of $2.529.

Shell Marianas president Phil Stalker attributed the increase to the rising cost of crude oil, which he claimed to have broken record highs. He assured, however, that Shell would roll back prices when market forces ease.

Mobil has raised gas prices in the CNMI six times this year for a cumulative gallon price adjustment of 27 cents. It first raised its pump prices by 3 cents, and then 4 cents, before taking on four rounds of 5-cent adjustments. The price increases resulted in a cumulative gallon price adjustment of 27 cents this year.

Mobil gas stations on the islands now retail regular and super gasoline at $2.589 and $2.679 per gallon at full-serve rate. Self-serve rate for regular and super gasoline have reached $2.379 and $2.479, respectively.