Marathon Says Kentucky's Price Gouging Law Is Unconstitutional

FRANFORT, Ky. (AP) - Marathon Petroleum Co. has filed a
countersuit against Kentucky in response to being sued by the state
for alleged price gouging.
Kentucky officials sued Marathon in state court on Thursday
accusing the fuel supplier of violating state price gouging laws in
the aftermath of hurricanes Katrina and Rita in 2005. Marathon
responded by filing suit in federal court asking that Kentucky's
price-gouging law be declared unconstitutional.
Attorney General Greg Stumbo claimed in the state suit that
Marathon overcharged Kentucky residents $86 million and that
Speedway and SuperAmerica stores overcharged an additional $3
million.
Angelia Graves, a spokeswoman for Marathon, said Thursday the
company did nothing wrong.
Stumbo's office cracked down on fuel suppliers when gasoline
prices in some parts of the state increased to more than $3 a
gallon in the wake of the devastating hurricanes, which damaged oil
rigs in the Gulf of Mexico.
Last August, the attorney general levied fines totaling $52,500
against 11 other Kentucky gasoline retailers to settle price
gouging allegations.
In Kentucky, retail prices jumped by as much as 70 cents a
gallon in the days following Hurricane Katrina.

(Copyright 2007 by The Associated Press. All Rights Reserved.)


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