Gas Price Spike Discovered

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(Sacramento, CA)
Thursday, June 15, 2006

The Commission found a three-week price spike from April 18th to May 9th.  According to the report, prices here are historically about 19 cents more than in New York.  During that time, they went up to 60 cents more. That means Californians paid 132 million more for gas. The Governor says he wants answers:

 “Is it price gouging? Were people being taken advantage of? Or was there a problem with the distribution, or was it a problem with the refineries, what is it exactly?

Tupper Hull with the Western States Petroleum Association – a trade group for oil companies says there could be a lot of explanations – but market manipulation’s not one of them:

“High taxes, high cost to produce the cleanest burning fuel, a very tight balance between the supply and demand for gasoline.”

The Governor has ordered the Commission to expedite its investigation and to have a final report by mid-August.