Maryland motorists were shocked to find gas prices jacked up overnight. That prompted Maryland Attorney General Douglas Gansler to send a letter asking Empire Petroleum Holding to justify informing its retailers that due to potential disruptions caused by flooding of the Mississippi River, Empire Petroleum had raised prices by approximately 25 cents per gallon, which Gansler said will have severe negative consequences on already cash-strapped Maryland consumers.
Empire Petroleum said it is cooperating with the attorney general and that gasoline distributors are just “middle men between oil refiners and retailers.”
In the District, officials are looking into another aspect of high prices. One company owns, operates or supplies 164 gas stations in the D.C. area. Officials are concerned that is pushing prices at the pump artificially high. The company, Capitol Petroleum Group in Springfield, Va., is owned by Ethiopian immigrant Eyoub “Joe” Mamo, who also owns DAG, a gas wholesaler.
Motorist Alfredo Escamilla said that with the price of oil dropping "gas should go down too, but who knows when?"
The average price of a gallon of regular self serve gas in D.C. reached a record $4.21 Thursday, according to AAA Mid-Atlantic, the second consecutive day a record was set.
D.C. Council member Mary Cheh said she is introducing legislation prohibiting suppliers from owning gas stations.
"We're concerned that they can dictate the price to their operators, and that's anti-competitive," she said.
Capitol Petroleum Group issued a statement in the name of Joe Mamo saying, "I own several dozen gas stations in the area. I simply own them, I do not operate them. I do not set the price of gas at the pump."
Mamo blames big oil refiners for the steep prices.
