Exxon may suspend supply during emergency if state won't clarify gouging law

摘要

ExxonMobil says it may stop supplying unbranded fuel to wholesalers in Florida during a state of emergency if regulators fail to clarify their current enforcement policies.rnFlorida law says there is prima facie evidence that a price is "unconscionable" if it "grossly exceeds" the average price the product was sold for 30 days before the declaration of an emergency, unless "additional costs" were incurred or a "national" or "international" market trend would account for the price.rnThe trouble is, Florida's Dept. of Agriculture and Consumer Services (DACS) has not defined the terms used in its law, even though the law has been in effect since 1992.rnExxonMobil says it wants the state to spell out what the law means when it comes to sales of unbranded wholesale gasoline - all interpretations and enforcement actions so far have focused on branded retail sales.rnIt would be "imprudent" for ExxonMobil to sell fuel at a price below its current costs in Florida during an emergency, the company says. In fact, by doing so it could be in violation of its own supply contracts, which are tied to a Platts U.S. Gulf Coast pricing formula, plus what Exxon says is "a narrow margin."