NEWARK / BELLEVILLE, NJ — Acting Attorney General Andrew J. Bruck announced Oct. 4 that the Division of Consumer Affairs has reached a settlement agreement for more than $138,000 involving five Essex County gas stations that were found to be overcharging consumers, including by selling regular fuel as premium.
The agreement resolves the investigation led by the Division’s Office of Weights and Measures and Office of Consumer Protection into violations of multiple N.J. consumer protection laws and regulations following unannounced fuel quality inspections at several gas stations.
In addition to making a monetary payment, K.P. Fuel Corp., BK Fuel Inc., DS Fuel Corp., Millennium Fuel Inc., and Harb and Parm Inc., and their owner Sukhdev Singh, of Belleville, have agreed to display the accurate price of any motor fuel they offer or sell and not to misrepresent one grade of fuel as another.
“New Jersey drivers should be able to fill their gas tanks without getting taken for a ride,” Bruck said. “Gas stations are on notice that we won’t stand for them cheating their customers. The sale of regular gas as premium not only causes consumers to overpay but also threatens damage to their vehicles.”
The majority of cars on the road today run on regular gas, but some vehicles require premium, which contains higher levels of octane and typically costs about 50 cents more per gallon. Regular gasoline in a vehicle designed to use premium can self-ignite. This can lead to a persistent knocking sound in the engine and, in severe cases, can cause significant engine damage, such as broken connecting rods and melted pistons.
“Whether consumers choose regular or premium gasoline for their vehicles, we want them to know that our office is committed to ensure that they get what they pay for at the pump,” acting Director of Consumer Affairs Sean P. Neafsey said. “I applaud the Office of Weights and Measures for their diligent fuel quality inspections and everyone responsible for implementing greater accountability.”
The division conducted its inspections between July 31, 2019, and Sept. 25, 2020.
Its investigation concerned violations of the Consumer Fraud Act; the Weights and Measures Act; the Motor Fuels Act; the Regulations Governing the Retail Sale of Motor Fuels; and the Scales, Instruments and Devices Regulations.
The respondent gas stations are: KP Fuel at 864 Mt. Prospect Ave. in Newark; BK Fuel, 108 Bloomfield Ave. in Newark; Millennium Fuel, 113-119 Franklin St. in Belleville; DS Fuel, 605 Washington Ave. in Belleville; and Harb and Parm Inc., doing business as Power Service Center, 456 W. Market St. in Newark.
Under the terms of the consent order, the respondents also agreed to maintain weighing and measuring devices in proper operating condition at the gas stations, to exhibit all required documentation for inspection and examination, and to comply with all state and federal laws and regulations.
The total settlement of more than $138,000 includes $114,200 in civil penalties and $24,319 in investigative costs and attorneys’ fees. Under the terms of the order, $27,519 in civil penalties are suspended and will be automatically vacated after one year if the respondents comply with the terms of the order.
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