NEW YORK (1010 WINS) -- New York Attorney General Letitia James launched an investigation Thursday into potential price gouging in the oil industry.
James’ office will investigate the entire gas supply chain and could have implications for major oil companies, refineries, pipeline operators, gas stations and more, according to reports.
"Soaring gas prices are forcing working New Yorkers and low-income families to make difficult decisions on whether to pay bills or put food on the table," said James in a statement to CNN. "Price gouging is unfair and illegal and my office is determined to make sure it doesn't happen in our state."
The investigation comes amid record gas prices across the country.
The average cost for a gallon of gas in New York is $4.19 — an increase of over a dollar from last year, according to AAA.
The spike in prices was originally attributed to market disruption as the United States imposed heavy sanctions on Russia — a major gas exporter — after the invasion of Ukraine.
“This newest round of sanctions could impact New Yorkers, so we are reminding companies that price gouging is illegal and ensuring that consumers take precautions to protect themselves and their wallets," said James on March 8, when gas sanctions against Russia had just started.
The price of crude oil has stabilized since then, but consumers are still paying exorbitant rates at the pump. The price of gas fell less than three cents per gallon over the course of the last month.
Meanwhile, the new state budget will suspend state gas taxes from June 1 to Sept. 31 in an attempt to offer relief for New Yorkers.
State infrastructure and public transit projects that rely on gas tax revenue will suffer from the cuts, but car owners, truckers and oil companies will reap the rewards.
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