Virginia Attorney General Bill Mims announced his office has reached a settlement with a gasoline retailer in Montgomery County for alleged price gouging violations.

The settlement with P.P. Raj Inc d/b/a Elliston Food Market relates to charges that that company violated the state's Post-Disaster Anti-Price Gouging Act by charging unconscionable prices for gasoline after the Governor declared a state of emergency on Sept. 10, 2008, pending the arrival of Hurricane Ike in the Gulf Coast. The settlement has been filed with the Circuit Court of the County of Montgomery for approval.

According to the AG's complaint, Elliston Food Market charged $4.799 gal for regular grade gasoline, on the evening of Sept. 12, 2008 and the morning of Sept. 13, 2008, a 33 percent increase over the Sept. 8, 2008 price of $3.599 gal. Mid-grade gasoline on those days was $4.899 gal, while premium cost $4.999 gal.

The settlement enjoins Elliston Food Market from engaging in any of the alleged practices that violate the Virginia Post-Disaster Anti-Price Gouging Act, and the Virginia Consumer Protection Act, and requires Elliston Food Market to set aside $150 for consumer restitution. The company must provide notice to its customers that they may be eligible for restitution by posting signs on its front door and on each individual gas pump. It also requires the company to use its best efforts to identify credit and debit card customers who purchased gasoline at the prices and on the dates noted above and to credit a refund to their credit or debit card for the appropriate amount of the overcharge.

In addition, Elliston Food Market is required to pay $1,000 to reimburse the Commonwealth for its costs, investigative expenses and attorney's feeds in this matter. The company is also required to make a contribution of $400 to the American Red Cross Disaster Relief Fund, which is in lieu of a payment of civil penalties.