ROMULUS, Mich. (WXYZ) — The Michigan Department of Attorney General has issued a cease and desist letter to a gas station near Detroit metro airport that reportedly overcharged customers by nearly $2 per gallon.
7 Action News spoke with the owner who said he believes he's done nothing wrong and that customers can choose to shop where they want.
The attorney general's office said it received consumer complaints in October and November that the BP gas station at 9201 Middlebelt Road in Romulus was charging $1.50 or more per gallon compared to most nearby competitors.
In the past week, the AG's office said a special agent visited the area twice and found the gas station had gas being sold for $4.74 per gallon.
Attorney General Dana Nessel sent a written notice of intended action against the gas station.
"With many people traveling both from and to our State in the coming days to spend the holidays with friends and family, we emphasize now that you should put the brakes on this pattern of what appears to be grossly excessive pricing," the AG's office said in the letter. "If you have additional information that might serve to justify your prices, we are very interested in receiving it. Know, however, that your mere location would not be a satisfactory justification—even if that is (as one of the consumer complainants suggested) the explanation."
The gas station has until Jan. 8, 2024, to respond to the notice.
“It is my hope this gas station will take this notice seriously and no further action will be necessary,” Nessel said. “My office stands ready to investigate reports of businesses that attempt to take advantage of residents, especially during the holiday season.”
7 Action News spoke with the owner, Marvin Hadir, by phone.
He said, “Gas prices are naturally regulated by supply and demand and consumers have the right to shop around for their goods and services."
Hadir said he tried contacting the AG's office by phone to resolve this.
“We made several phone calls and we haven’t gotten a phone call back yet. So in order to solve the issue, we want to see why and how they think it’s price gouging," he explained.
“Is there a premium on there because you’re close to the airport? Yes. Are we gouging? I do not believe so. Not at all.”
