Farmingdale Gas Station Slapped with Price Gouging Judgement

A Farmingdale gas station has been slapped with a judgement of default in connection with price gouging accusations made in the wake of Hurricane Sandy. 

State Attorney General Eric T. Schneiderman announced the judgement and several other settlements across the Hudson Valley and in Massapequa this week. 

“As thousands of New Yorkers sat in line for hours waiting to buy gasoline during the state of emergency created by Hurricane Sandy, some crooked station owners increased their retail prices by excessive and illegal amounts,” Schneiderman said.

Schneiderman obtained a default judgment of $23,733 against Mena Inter Inc., doing business as a USA Petroleum gas station in Farmingdale. The judgment includes disgorgement of excess profits, civil penalties, and costs to the state, and represents the largest penalty assessed for gouging at a single station.

The order was entered by the Honorable Norman Janowitz in State Supreme Court in Nassau County.

According to the Attorney General's office, the default judgement was the result of the following price differences over the short span of time before and after the late October Hurricane.

• Difference between wholesale price and retail price prior to storm: $1.04
• Difference between wholesale price and retail price immediately following storm: $1.80
• Increase in wholesale/retail spread before-and-after the storm: 73%
• Retail price immediately following the storm: $4.59.