UCAN calls on California Attorney General Kamala Harris to investigate gasoline price gouging
Get the LETTER TO THE ATTORNEY GENERAL HERE.
California now pays the highest price for gasoline ever recorded in the
At this time, oil is selling for $92 a barrel on the MERC, yet our gas
prices are higher on average than when oil was selling for $147 a
barrel in 2008.
Late yesterday afternoon, Charles Langley, Manager of UCAN's Gas
Project received approval from UCAN's interim Executive Director, Pat
Zaharopoulos to send a three-page letter to California Attorney
General Kamala Harris requesting an investigation into the wholesale
failure of California's gasoline markets. The letter outlines six
areas of questionable activities, events and market failures that
require investigation by law enforcement and regulators.The oil
industry claims that this is a problem created by the need in California
for a winter blend and a summer blend as mandated by state pollution laws.
On Sunday, October 6, just 72 hours after gas prices increased
by 75¢ at the wholesale level, Governor Brown issued an Emergency
pollution waiver. Many analysts (not including UCAN) predicted that
prices would plummet. The move was expected to increaes the available
supplies of fuel by as much as 10% . However, the re-shutting down
of a major Exxon refinery for a planned flaring event offset the waiver
because the Torrance refinery produces about 8% of the State's gasoline,
threatening to completely reverse the positive impact of the Governor's
The letter outlines eight issues that should be covered by an investigation.
-- Intentional under-production of fuel to restrict supply
-- Overseas exports of gasoline - dumping fuel to restrict supply
-- Lax regulation of refinery safety and operations
-- An investigation of perverse incentives to restrict supply
-- Questionable “flaring events” at Exxon / Mobil
-- Tesoro’s horrifyingly anticompetitive purchase of BP’s Carson refinery
-- Supply trading agreements between competitors who should be competing
-- Shut down of Chevron’s Kettleman-Los Medanos pipeline.
For more information, contact Charles langley, Manager of UCAN's Gas Project