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Attorney General To Propane Suppliers: No Price Gouging

Posted at 10:54 AM, Mar 05, 2014
and last updated 2014-03-05 10:54:30-05

A propane user checks his tank. (File photo)

LANSING, Mich. (March 5, 2014) — Michigan Attorney General Bill Schuette sent a warning Wednesday to the state’s propane providers warning them against “unscrupulous behavior” regarding prices while propane remains in short supply.

Area dealers and customers have told FOX 17 how propane supplies have dropped and prices have risen.

“Suppliers be warned: we are watching and will not hesitate to take action if the law is broken,” Shuette said in a release. The Michigan Consumer Protection Act says that prices cannot be “grossly in excess of the price at which similar property or services are sold.” It is also illegal for anyone to agree to fix prices.

But customers who have price-guarantee contracts may see price increases after their contracts run out, which is perfectly legal, the release noted. Prices for propane are currently around $3.20 a gallon around the state, though contracted prices are likely to be much lower.

Anyone who believes price gouging is taking place is asked to contact the Attorney General’s Consumer Protection Division at 877-765-8388 or file an online complaint at http://www.michigan.gov/ag