Richmond gas station settles with AG’s office in pipeline price-gouging case

A Richmond gas station is on the hook for refunds after raising prices to as high as $6.99 a gallon at the height of the Colonial Pipeline shutdown.

Richmond-based 7HC Inc., doing business as 7 Heaven BP, a gas station on Williamsburg Road in Richmond, raised prices after Gov. Ralph Northam declared a state of emergency on May 11 in response to the temporary shutdown of the Colonial Pipeline.

“It’s unfortunate that bad actors will take advantage of emergencies, natural disasters, or other times of crisis just to line their own pockets,” Attorney General Mark Herring said. “My Consumer Protection Section has been committed to pursuing and investigating allegations of possible price gouging, and we will continue to take action against those businesses that have preyed on consumers and overcharged during an emergency. Virginians should never have to worry about paying too much for gas and other necessary goods during a crisis when they are focused on taking care of themselves and their families.”

Herring’s complaint alleges that, during the ten days immediately preceding the governor’s emergency declaration, the gas station was charging $2.649 per gallon for regular unleaded fuel, $3.199 per gallon for plus (midgrade) fuel, and $3.549 per gallon for premium unleaded fuel. Then, in the evening of May 11, immediately after the state of emergency was declared, the business elevated its prices on all grades of gallons of gasoline several times – eventually topping out at $6.99 per gallon on regular and premium gasoline.

A violation of Virginia’s price gouging law is also a violation of the Virginia Consumer Protection Act.

Under the terms of the settlement with the AG’s office, 7 Heaven BP agrees to be enjoined from engaging in further violations of Virginia’s price gouging law and the Virginia Consumer Protection Act. The business also has agreed to pay $2,000 in attorneys’ fees and has distributed $2,858.70 in refunds to 152 consumers through credit card reimbursements and direct cash refunds.

Consumers who purchased gasoline from 7 Heaven BP on May 11, and who have not received a refund, should file a complaint with the Attorney General’s Consumer Protection Section. Complaints should include documentation of the purchase and be submitted to the Attorney General’s Office by no later than Feb. 22, 2022.

The settlement, in the form of an Assurance of Voluntary Compliance, has been filed for approval with the Richmond City Circuit Court.