High Gas Prices Basis for Lawsuit Against Northeast Gasoline Distributor

The group of 11 retailers allege the distributor contributed to high pump prices in Connecticut.

June 13, 2011

HARTFORD, Conn. - Eleven Connecticut motor fuels retailers are suing their distributor over high gasoline prices, the Associated Press reports. The plaintiffs operate 16 stations and allege that Alliance Energy LLC and ExxonMobil Corp., among others, engaged in unfair trade practices that contributed to Connecticut having extremely high pump prices.

The lawsuit seeks damages and a court order that would enforce fair fuel prices. The retailers are part of the 88 Connecticut gasoline stations Alliance Energy took over from ExxonMobil earlier this year. The retailers said that Alliance started asking for 17 cents to 22 cents more per gallon of fuel than ExxonMobil had, in addition to other onerous stipulations.

"In mid-May, one of my clients complained that there was a 39-cent differential between what he was paying (for gas) and what a competing station was able to charge," said Richard Weinstein, an attorney for the retailers. "They've all incurred substantial price increases since Alliance took them over, and the dealers have passed those price increases on to consumers."

Alliance Energy contends that the suit is without merit and ExxonMobil could not be reached for comment by the Associated Press.

One of the plaintiffs, Syed Bokhari, said the higher prices charged by Alliance are forcing them out of business. "Everybody is losing money," he said. "This just amounts to economic slavery. We are getting more and more in debt. We are stopping payments just to stay above water. There must be justice prevailing."

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