East Hanover Exxon Gouged Gas 26 Percent Post-Sandy, AG Says

A new lawsuit filed by state Attorney General Jeffrey Chiesa claims C&M Exxon of East Hanover gouged gas prices following Superstorm Sandy more than 26 percent.

Chiesa said the gas station, on Ridgedale Avenue, raised regular gas prices by 26.3 percent, or to $4.79 on credit card sales, and premium prices by as much as 34.2 percent, or to $5 for credit card sales.

C&M is being sued along with several other local businesses as part of a group of lawsuits against establishments that allegedly raised prices during the aftermath of the storm. Chiesa and the Division of Consumer Affairs filed a similar lawsuit last year against several area businesses including gas stations and hotels.

“Anyone paying attention in New Jersey knows we will not tolerate illegal attempts to take financial advantage of anyone affected by Superstorm Sandy,” Chiesa said in a press release. “We continue to investigate the more than 2,000 consumer complaints that were received during the storm’s immediate aftermath, even as we watch for possible new types of post-disaster fraud.”

In the latest wave of lawsuits, Studio Inn and Suites in Galloway has also been accused of raising room rates by as much as 283 percent and Berkeley Hotel in Asbury Park was accused of raising room rates by as much as 117 percent. In C&M Exxon's case, as well as the two hotels', Chiesa said no higher costs warranted the price increases in the days following Sandy while a state of emergency was in place.

Chiesa claims the businesses are in violation of the state's price gouging law, which prohibits excessive price increases during a state of emergency or for 30 days following one. If a merchant must incur an additional cost, the prices they ask of customers are not expected to exceed 10 percent above typical markup.

“The victims of price gouging are families who were displaced from their homes, desperate for shelter, heat, and fuel as a result of the most severe natural disaster in New Jersey’s history,” Eric T. Kanefsky, acting director of the state Division of Consumer Affairs, said. “We owe it to these New Jersey residents to see every allegation of price gouging to its proper end.”

The state has filed lawsuits against 27 business, including 12 gas stations and 15 hotels, for allegedly price gouging after Superstorm Sandy. Two of the gas stations have since settled and agreed to pay $46,000 collectively.