Representatives of the gasoline industry told legislative leaders there is no evidence of price gouging in Colorado in the wake of Hurricane Katrina, despite sharp jumps that pushed gas prices to record levels above $3 a gallon.
House Speaker Andrew Romanoff, D-Denver, and Rep. Gwyn Green, D-Golden, met with industry officials after Green threatened to introduce legislation establishing penalties for price gouging.
Steve Douglas, general manager for product supply for Suncor Energy, said it took four days for prices to rise following the hurricane, forcing retailers to absorb price increases. He said it could take some time for prices to go down to pre-hurricane levels as retailers try to recoup those increased costs.
He said the average price has dropped to $2.81 for unleaded regular, 22 cents above the average price before the storm.
“I don’t think price gouging is going on here,” said Roy Turner of the Colorado-Wyoming Petroleum Marketers and Convenience Store Association.
Unlike more than 20 other states, Colorado has no law prohibiting price gouging, defined as jacking up prices for a commodity during emergencies.
