- Elizabeth Larson
- Posted On
Governor, U.S. senators address spiking gas prices; locals report per-gallon prices topping $5
LAKE COUNTY, Calif. – As California’s gas prices continue to climb, the governor has taken action to try to push down prices and the state’s U.S senators asked federal officials for investigations into potential price spiking.
In response to the rising gas prices – which officials said are up due to shutdowns at the Tesoro and Exxon refineries – Gov. Jerry Brown on Sunday directed the California Air Resources Board to take emergency steps to increase the state’s gasoline supply and bring down fuel prices.
Specifically, Brown directed the board to immediately allow oil refineries to make an early transition to winter-blend gasoline, which typically isn’t sold until after Oct. 31. It evaporates more quickly than the gasoline sold in summer months.
“Gas prices in California have risen to their highest levels ever, with unacceptable cost impacts on consumers and small businesses,” said Brown.
On Monday Sen. Dianne Feinstein and Sen. Barbara Boxer both made their appeals for investigations. Boxer made her request to the U.S. Department of Justice’s Oil and Gas Price Fraud Working Group, while Feinstein sent a second letter to Jon Leibowitz, chairman of the Federal Trade Commission.
“Californians have too often been victimized as unscrupulous traders have created or taken advantage of supply disruptions to drive up energy prices,” Boxer wrote to U.S. Attorney General Eric Holder. “We cannot allow market manipulation by those who would seek to profit off the pain of our families at the pump.”
In her letter to Leibowitz, Feinstein wrote, “California commuters are facing the highest gas prices and the longest commutes in the country. Paying hundreds of dollars to fill your tank every time you go to the pump is untenable, particularly because it does not appear the price spike and supply disruption are related to supply and demand.”
California already has the highest gas prices in the nation, according to Gasbuddy.com, which tracks gas prices and the petroleum industry around the United States.
A map of California counties showed that Lake’s gas prices are in the bottom third of the state, ranging between $4.63 and $4.70, according to Gasbuddy.com’s data.
On Monday, Lake County News posted this question on its Facebook page: “In your travels around Lake County, what is the highest gas price you've seen and where was it?”
Readers responded that prices around the county ranged from a low of $4.33 in Lakeport to a high of $5.19 in Kelseyville. Middletown prices also were reported to have crept over the $5 mark.
Boxer’s letter to Holder acknowledged California refineries’ maintenance issues – including the shutdown of Chevron’s Richmond refinery in August as the result of a fire, the power outage at Exxon Mobil’s Torrance refinery and last month’s shutdown of a Chevron pipeline that supplies crude from the Central Valley to the Bay Area.
However, she pointed out that there were price spikes earlier this year due to similar maintenance issues for West Coast refineries, and noted, “it is critical that we ensure that these shutdowns are not part of any broader effort to deliberately keep gasoline supplies tight – and prices high – at the expense of consumers.”
In her letter to the Federal Trade Commission, Feinstein noted, “California’s consumers are all too familiar with energy price spikes which cannot be explained by market fundamentals, and which turn out years later to have been the result of malicious and manipulative trading activity. It is with this history in mind that I call on the FTC to act immediately and aggressively to protect California’s consumers.”
Brown’s action to direct an early transition to winter-blend gasoline could increase California’s fuel supply by up to an estimated 8 to 10 percent with only negligible air quality impacts, according to the Governor’s Office.
The Exxon refinery came back online Friday and Tesoro is scheduled to resume production early next week, which the Governor’s Office anticipated will stabilize and reduce fuel prices across California.
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