Maryland's new agreement with rental car companies setting price caps on gas charges for cars returned with less than a full tank could become a catalyst for new refueling policies nationwide, state officials said yesterday.
The agreements, which will shave refueling charges by as much as a third, mean Maryland will have one of the lowest rental vehicle refueling charges in the country, according to AAA Mid-Atlantic. But even with the agreements, consumers will still be paying a hefty premium over pump prices if they don't fill up themselves.
Maryland Attorney General Douglas F. Gansler said the rental companies agreed to the reductions after the state threatened to fine or sue the companies for violating Maryland's transportation code, which requires "reasonable" rental fees.
"Our position is we could go to a jury and say, 'Charging $8 a gallon for $4 gas would not be reasonable,'" Gansler said at a news conference yesterday at the rental car facility at Baltimore-Washington International Thurgood Marshall Airport. "Everybody who rents a car thinks these fees are outrageous. ... We hope [the agreements] become a national model."
Beginning July 1, the state's eight major rental car companies will charge customers returning cars in Maryland no more than 42 percent over local pump prices. Hertz, the largest rental car company, agreed to charge no more than 35 percent more - or $5.40 when pump prices are $4 - or a $10 flat fee.
Hertz now charges BWI customers $7.99 a gallon, the highest in Maryland and around the country, Gansler said.
Hertz announced this week a nationwide program beginning July 1 to charge market rates plus a $6.99 service charge to refuel.
"What we're offering is better than what Maryland is proposing," Hertz spokeswoman Paula Rivera said. "Customers were telling us the refueling options are definitely confusing and they can be expensive. We're aiming to cut some of the hassles out of the car rental experience."
Hertz will also offer customers who purchase a full tank of gas at the outset of the rental a discount of about 15 cents a gallon off market rates.
Other rental car companies, such as Avis and Thrifty, said they hadn't yet decided whether to reduce refueling rates across the country.
"We will continue to monitor the response among our competitors to see if this is something that breaks nationwide," said Chris Payne, spokesman for Thrifty and Dollar Rent A Car. "But at this time, Dollar Thrifty Automotive Group is limiting this policy to Maryland."
