State announces formal price gouging investigation into major gasoline supplier

State announces formal price gouging investigation into major gasoline supplier

TALLAHASSEE/December 9, 2008  – Florida Agriculture and Consumer Services Commissioner Charles Bronson and Attorney General Bill McCollum today announced their offices have jointly initiated a formal price gouging investigation into Morgan Stanley Group, Inc. and its subsidiary, TransMontaigne, Inc., a major gasoline supplier.

"Florida will not tolerate price gouging by anyone," said Commissioner Bronson.

The investigation stems from events following Governor Crist’s declaration of a state of emergency prior to Hurricane Ike. The two agencies received thousands of price gouging complaints on gasoline prices.

"Our investigation will continue to determine exactly what led to the extraordinary increases in the price of gasoline," said Attorney General McCollum.

Morgan Stanley owns TransMontaigne, Inc., and purchases gasoline for the company. TransMontaigne, in turn, supplies wholesale gasoline through distributors to stations throughout the State of Florida, including McKenzie Oil Company, a retail gasoline station in Tallahassee. Jobbers are the contracted drivers of tanker lines.

A review of McKenzie’s invoices by state investigators revealed that the prices charged were a result of the wholesale charges paid to TransMontaigne. Further review determined Morgan Stanley sets the contracted prices of gasoline to its wholesale suppliers, including TransMontaigne, Inc.