Suthers Responds to Lindstrom

Thank you for your letter regarding gasoline prices in Eagle, Summit, and Lake Counties.  We have received and reviewed similar complaints over the years, involving these counties and other mountain and resort communities.  Such communities pose unique challenges when evaluating complaints about high gasoline prices.  With fewer stations, sharp ebbs and flows in seasonal demand, and higher operating costs, it is not unusual to see generally higher prices in these communities.  High prices alone, however, do not suggest or prove illegal conduct by gasoline retailers.

As you know, Colorado does not have a price gouging law covering gasoline sales.  Anti-gouging laws in other states typically focus on abnormal disruptions in particular marketplaces caused by natural disasters or other emergencies.  In no state are such laws designed to supplant competitive market forces by establishing government imposed caps on high prices.  The law of supply and demand typically works well to discipline sellers who seek to charge insupportably high prices for any commodity.

That assumes, of course, that the markets in question are competitive.  If sellers of any commodity are engaged in a conspiracy to set the price of that commodity those sellers may be investigated and prosecuted under Colorado law for price-fixing.  The key is the existence of an actual agreement by competitors to fix prices.  Charging similar, or even identical, prices of a fungible commodity by watching a competitors price postings is not price-fixing.  Some evidence of a conspiracy to set prices is required before an antitrust investigation is warranted.

My office will continue to review all complaints of improper pricing of gasoline products in Colorado.  I am prepared to take all necessary action when presented with evidence of an illegal conspiracy to fix prices or any other antitrust violation.

Sincerely,