Business & Tech

Massapequa Gas Station Named in Sandy Price Gouging Suit

State Attorney General Sues BP on North Broadway.

A Massapequa gas station has been accused by the state of price gouging in the days following Hurricane Sandy.

The BP station at 900 Broadway was one of four stations named in a lawsuit filed by New York State Attorney General Eric Schneideman claiming they raised prices after the storm.

According to the Attorney General, the station increased profits by 51 percent in immediately following Sandy. They released information saying that the difference between the wholesale price and retail price of gas was $0.78 per gallon before the storm and $1.18 after the storm.  

BP charged $4.29 immediately following the storm.

"We are sending a powerful message that ripping off New Yorkers during a time of crisis is against the law and we will do everything in our power to hold them accountable," Schneiderman said Thursday.

Iqbal Hossain, who manages the BP station said the chaos after the storm caused him to have problems setting a price.

"We were without power for eight days," he said. "I couldn't reach the BP website. They set the price."

When power was finally restored, Hossain said BP was still unable to give him a price. So he checked the prices of other gas stations in the area and set his price at  $4.29, he said.

Hossain, who had to deal with the fallout from the BP oil spill in 2010, insisted that he heard from BP later that same day and dropped the price to $4.09. He also says he paid all appropriate taxes to the state.

He learned of the problem when he received a letter from the attorney general. The station owner said he wouldn't comment further on the suit.

Three other stations were named in the lawsuit., including businesses in Farmingdale, West Islip and Brooklyn.

The Attorney General also announced his office has reached settlements with 25 other stations including 20 on Long Island.

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