Cromwell, Conn. — Chris Herb, President and CEO of the Connecticut Energy Marketers Association (CEMA), issued the following statement in response to today’s announcement by Attorney General William Tong, Department of Consumer Protection Commissioner Bryan Cafferelli, and Department of Energy and Environmental Protection Commissioner Katie Dykes regarding the declaration of an “abnormal market disruption” in gasoline prices.
“Recent statements from state officials regarding gasoline prices risk creating confusion about what is actually driving costs at the pump. While we appreciate the focus on protecting consumers, it is critical to be clear that the primary reason gasoline and other fuel prices are increasing is the ongoing geopolitical crisis stemming from the war in Iran, not price gouging by local family-owned retailers,” Herb said.
“The global oil market is highly sensitive to disruption, and the current conflict has directly impacted crude oil supply chains, shipping routes, and overall market stability. Any threat to key transit points, including the Strait of Hormuz, immediately drives up the cost of oil worldwide, and those increases flow directly into wholesale gasoline prices and, ultimately, to consumers here in Connecticut,” Herb added.
State officials said in a press release that the declaration was triggered by a rapid increase in wholesale gasoline prices, which under Connecticut law activates additional consumer protections and enforcement authority related to price gouging.
“The data cited by state agencies shows a dramatic rise in wholesale prices over a short period. That type of increase is consistent with global supply shocks, not local market manipulation. Retail gasoline stations, many of which are small, locally owned businesses, operate on thin margins and are responding to rapidly rising wholesale costs, not creating them,” Herb said.
“We support strong enforcement against any bad actors who violate the law. However, it is equally important to recognize the overwhelming driver of current gasoline prices is the global energy market disruption caused by the Iran conflict and market reactions to it—not actions by local fuel retailers.”
About CEMA
The Connecticut Energy Marketers Association (CEMA) is a nonprofit trade association representing more than 600 locally owned home heating oil and propane companies, along with businesses that operate approximately 75 percent of the state’s gasoline stations.