How to Avoid a Gasoline Price Scam

A scam involving deceptive pricing by gasoline station operators is spreading across the nation. In some states this scam is inflating the cost of gasoline by as much as $0.25 per gallon, and most customers who are numbed by the daily rising price of gasoline at the pump don't even notice it.

If one traces the recent history of the uncontrolled rise in prices at the pump it is easy to understand how the scammers get away with over-charging customers without being challenged by those who are scammed.

Six months ago - drivers in my home town were paying an average of $3.17 per gallon for gasoline. To fill up a 20 gallon tank costs $63.40.

Three months ago - drivers here were paying an average of $3.39 per gallon resulting a cost to fill up of $67.89.

One month ago - drivers paid $3.88 per gallon and $77.68 to fill up.

In the weeks since the price has risen $0.10 per gallon every week increasing fill up costs to $79.66, $81.66, $83.66.

Gasoline customers have become so use to higher prices each week that they no longer no what the total cost to fill up should be (what to expect) and as a result they accept whatever the price is never realizing they have been scammed out of an additional $2.00 to $5.00 per fill up.

The scam works as follows:

The average driver in an attempt to save as much as possible on gasoline purchases observes the prices per gallon posted on the roadside signs at each station, and will stop at the station offering the brand of gasoline he or she prefers at the lowest price.

Finding a station which is advertising brand name gasoline for $4.15 per gallon is a bargain and so the motorist stops, fills his tank and pays at the pump with a credit card.

At $4.15 per gallon the 20 gallon fill up would cost $83.00. Most motorists however, would never make this mental calculation and simply remove the receipt and drive away, happy to have one more full tank of gas.

What the motorist failed to notice was his receipt is actually for $87.00, a $4.00 (and $0.20 per gallon) overcharge.

When more observant motorist questions the over charge the station attendant informs them that the $4.15 price advertised is for "cash only" payments and that all credit sales pay the $0.20 per gallon.

In stations which openly advertise both a "cash only" and a "credit" price on station billboards this is acceptable, but today many less honest station operators advertise only the cash only price with no notification that this is the requirement to get the advertised price. In these "scam" stations the self service gas pumps are programmed to charge the higher rate without any prior notification whenever a credit card is used to make the transaction. This higher credit card rate is determined at the sole discretion of the station operator.

When questioned on this shady practice station operators claim it is necessary to cover added charges placed on all credit transactions by credit card companies like Visa, Master Card and Discover card. However, credit card fees for service are limited to 2% of the transaction which would account for an addition of $0.08 - .09 per gallon. Many of the worse scammers are adding $0.15 to $0.25 per gallon, which is all added profit.

Some ways to avoid this scam include buying gas only at stations that clearly advertise "cash only" and "credit" gasoline prices. In instances in which only one price is advertised either pay cash or check inside with the clerk prior to filling up to ensure there is not a dual price structure.

Also, always check the price per gallon at the pump once the transaction has been approved and the gas is pumping. If the price is higher than the advertised you can quit pumping before running up the unexpected $4.00 - $5.00.

Finally, always check your credit card receipt before driving away. As there is some fear of bad publicity and/or legal action some station owners will refund the added charge to complaining customers. If that fails checking your receipt will allow you identify the over charging station so that you can avoid it in the future.

For some reason scam artists always take advantage of innocent people during the most desperate times.