On Tuesday, the average price for regular unleaded in San Diego was an unusually low $2.79 a gallon. "Unusual" because this is the first time in the ten-year history of UCAN's Gasoline Project, that local gas prices matched the USA average, according to the U.S. Energy Information Agency (EIA) Web site.

Today's average is almost 10 cents more than last Tuesday, but oddly enough, it also is 20¢ lower than the price of gasoline last year when the price of oil cost 22¢ more per gallon (see chart below).*

Welcome to the "free market" Twilight Zone where the laws of supply and demand do not apply ...

Hard to believe but true: The oil in a gallon of gasoline actually costs MORE this year than it did last year when the price per gallon was twenty cents less.

The oil industry has been quick to criticize UCAN for "complaining about low gas prices," but that's not what we are doing at all. What we are pointing out is that California's gasoline prices have nothing to do with the cost of oil, and that refinery pricing managers set gas prices, not market conditions.

So why are ostensibly greedy refiners limiting their profits by keeping their gas prices artificially low?

We are convinced that the refiners are intentionally limiting prices (see July 3 Commentary) to prevent public anger during a critical impending vote on the future of U.S. energy policy in the U.S. Senate (see House Resolution 969 (read text). Until 969 is decided, prices will remain abnormally low, here and nationally, for the forseeable future. Don't believe us? Just watch what happens.

For related stories on how the U.S. oil industry is manipulating the retail price of gas for political gain, see below:

345287 [at] video [dot] fox6 [dot] com">Fox News interview with UCAN's Charles Langley, August 10, 2007.

UCAN's commentary from November 10, 2006 - Read how the oil industry deliberately drove prices down until election day, and then immediately started raising prices the morning of November 8th.

August 15, KPBS Radio Interview: Drop in gas prices a shirk move by Big Oil

UCAN Radio Interview, KCRW, : The price of oil is going up, why not gasoline?

Commentary: July 31, 2007: Oil prices up, gas prices down.

Commentary, July 3, 2007: Heat to price driving gas prices down.

Looking for cheaper fuel? Click here to visit our cheap gas locator.

*According to the U.S. Energy Information Agency, the price of oil last year was $67.32 a barrel on September 7. On September 5 of 2007, oil cost $76.70 a barrel. There are 42 gallons of oil in a barrel. Therefore, the per gallon cost of the oil in a gallon of gasoline was $1.60 on this day last year, compared to $1.82 a gallon this year, a difference of 22¢ a gallon.