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CNN Live At Daybreak

Gas Pains: What Do You Believe?

Aired August 29, 2003 - 06:32   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Today kicks off the long Labor Day weekend, and may people will hit the road for a little R&R and some last-minute summer fun. AAA expects more than 33 million people to travel more than 50 miles from home this weekend.
It's expected to be the busiest travel weekend for Labor Day since 1995, and it probably will be expensive for most because gas prices are up. And now, questions are being raised.

Connecticut Governor John Rowland wants an investigation. He joins us live from Hartford this morning.

Good morning, Governor.

GOV. JOHN ROWLAND, CONNECTICUT: Good morning, Carol. How are you?

COSTELLO: I'm fine. You want the Connecticut Department of Consumer Protection to investigate whether collusion or price gauging is going on. What do you think is going on?

ROWLAND: Well, the cynic in me suggests that each and every year when we come up on a busy weekend, whether it's Memorial Day or July 4 or Labor Day weekend, all of a sudden the prices spike up. And if you look back, in my case, over the last nine years that I've been governor, I want to just think it's a coincidence and perhaps there are other markets at force, at work, and perhaps there are other issues that are taking place.

And generally, what happens is that we blame some worldwide event. In this case, it's Iraq, or perhaps it was the blackout two weeks ago. But I think it's worthy of looking into the retail market, the wholesale market, and then, of course, what's going on in the New York Mercantile Exchange.

So, I think a lot of us across this country are becoming quite cynical about the price gauging that seems to be taking place and the spikes that take place right before a busy holiday weekend.

COSTELLO: You're right, sir. Many Americans are quite upset about this, and many Americans will think it's grand that you're doing this. But how difficult will it be to prove any of this?

ROWLAND: It will be very difficult. What we have to do in our investigation is prove that there has been illegal tampering with the prices, either at the national or at the local level. So, we're going to do a couple of things. When we finish doing our homework, we're going to give the information to our attorney general, who can follow through on civil penalties, possibly criminal if we can find some evidence of illegal tampering with the market.

And then, of course, we can refer to the national stage, and, of course, that would be a little bit more difficult, because there hasn't been any real effort, in my opinion, on the national market to independently look at when prices go up and when there are spikes. Obviously everybody says it's due to the shortage.

COSTELLO: Yes.

ROWLAND: But it always seems to happen right before a busy weekend. And I don't buy it, and I don't think a lot of the consumers in this country buy it.

COSTELLO: So, if nothing comes of this investigation, what will you do?

ROWLAND: If nothing becomes of it, I think -- again, I think the American people will continue to be somewhat cynical. We'll continue to look at the market. We also face the reverse side, especially in New England with oil prices that spike up generally during the very cold months of December, January and February.

So, we're going to do the best we can and try to protect the consumer and see if there is any tampering that's taking place at wholesale or national levels.

COSTELLO: And...

ROWLAND: And refer it to the proper authorities.

COSTELLO: Before you go, how much is a gallon of gas in Connecticut these days?

ROWLAND: Oh, it averages about $1.85, and clearly it spiked up probably about 20 cents over the last two weeks. And I just don't happen to believe it's because of the blackout or the Iraqi war or any other international or national event. I think there has been manipulation.

COSTELLO: All right, we'll see what happens. Governor Rowland, thanks for joining us live on DAYBREAK this morning.

ROWLAND: Thank you.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.







Aired August 29, 2003 - 06:32   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Today kicks off the long Labor Day weekend, and may people will hit the road for a little R&R and some last-minute summer fun. AAA expects more than 33 million people to travel more than 50 miles from home this weekend.
It's expected to be the busiest travel weekend for Labor Day since 1995, and it probably will be expensive for most because gas prices are up. And now, questions are being raised.

Connecticut Governor John Rowland wants an investigation. He joins us live from Hartford this morning.

Good morning, Governor.

GOV. JOHN ROWLAND, CONNECTICUT: Good morning, Carol. How are you?

COSTELLO: I'm fine. You want the Connecticut Department of Consumer Protection to investigate whether collusion or price gauging is going on. What do you think is going on?

ROWLAND: Well, the cynic in me suggests that each and every year when we come up on a busy weekend, whether it's Memorial Day or July 4 or Labor Day weekend, all of a sudden the prices spike up. And if you look back, in my case, over the last nine years that I've been governor, I want to just think it's a coincidence and perhaps there are other markets at force, at work, and perhaps there are other issues that are taking place.

And generally, what happens is that we blame some worldwide event. In this case, it's Iraq, or perhaps it was the blackout two weeks ago. But I think it's worthy of looking into the retail market, the wholesale market, and then, of course, what's going on in the New York Mercantile Exchange.

So, I think a lot of us across this country are becoming quite cynical about the price gauging that seems to be taking place and the spikes that take place right before a busy holiday weekend.

COSTELLO: You're right, sir. Many Americans are quite upset about this, and many Americans will think it's grand that you're doing this. But how difficult will it be to prove any of this?

ROWLAND: It will be very difficult. What we have to do in our investigation is prove that there has been illegal tampering with the prices, either at the national or at the local level. So, we're going to do a couple of things. When we finish doing our homework, we're going to give the information to our attorney general, who can follow through on civil penalties, possibly criminal if we can find some evidence of illegal tampering with the market.

And then, of course, we can refer to the national stage, and, of course, that would be a little bit more difficult, because there hasn't been any real effort, in my opinion, on the national market to independently look at when prices go up and when there are spikes. Obviously everybody says it's due to the shortage.

COSTELLO: Yes.

ROWLAND: But it always seems to happen right before a busy weekend. And I don't buy it, and I don't think a lot of the consumers in this country buy it.

COSTELLO: So, if nothing comes of this investigation, what will you do?

ROWLAND: If nothing becomes of it, I think -- again, I think the American people will continue to be somewhat cynical. We'll continue to look at the market. We also face the reverse side, especially in New England with oil prices that spike up generally during the very cold months of December, January and February.

So, we're going to do the best we can and try to protect the consumer and see if there is any tampering that's taking place at wholesale or national levels.

COSTELLO: And...

ROWLAND: And refer it to the proper authorities.

COSTELLO: Before you go, how much is a gallon of gas in Connecticut these days?

ROWLAND: Oh, it averages about $1.85, and clearly it spiked up probably about 20 cents over the last two weeks. And I just don't happen to believe it's because of the blackout or the Iraqi war or any other international or national event. I think there has been manipulation.

COSTELLO: All right, we'll see what happens. Governor Rowland, thanks for joining us live on DAYBREAK this morning.

ROWLAND: Thank you.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.