State probe finds no evidence of gas price fixing
Gas prices in the Seattle area have gone up 230 percent in 5 years. Records were set as a new gas price report was unveiled by the Attorney General.
The reaction of motorist Danny Pound is typical: "I think somebody's getting ripped off." Asked if he meant he was, Pound answered: "Yes, Yes!".
On Thursday, Washington State Attorney General Rob McKenna released the results of a $161,000 state survey.
The summary line: "This investigation did not uncover any illegal conduct in Washington."
McKenna said: "We didn't find any evidence that points in the direction of illegal conduct, such as price fixing or gouging in the United States."
So what is going on?
The study says West Coast refineries do not produce enough gasoline to keep us going.
So the West Coast has to import expensive gas (16% is the total imported, 6% from foreign sources) and that keeps prices high.
This explanation does not play well to motorist Elise Child: "I think everyone is ripping us off. To tell you the truth, the oil companies have had their most profitable year in centuries, you know."
McKenna says the reason for the huge profits by OPEC and some oil companies is that they own oil fields. He says profit margins at refineries and in distribution have actually gone down in recent months.
The Attorney General says widely varying prices from Seattle to Bellingham to Spokane appear justified by either transportation costs or border considerations. (The border considerations including higher prices in Canada leading to higher prices in Bellingham and lower prices in Idaho forcing Spokane prices down.)
The Attorney General says, if you want to blame someone, blame OPEC, which he called a price fixing cartel. "We will continue to enforce the market price rules to the extent of our jurisdiction, which unfortunately does not extend to OPEC. At the same time, we will continue to watch for any future evidence of price manipulation."
The best advice if you're upset is walk or ride the bus.
A new survey by Seattle's Sightline Institute, also released Thursday, says new figures show gas use is going down. The research director Clark Williams-Derry told KOMO 4 News: "A significant reduction in per capita consumption; that is, we are using less. In fact, we are using 10-11 percent less than we did in the '90s."
McKenna says decreased local gas consumption will not necessarily lead to lower pump prices because world consumption, particularly in China and India, is increasing and will keep oil prices high.
McKenna says one answer resulting from the survey might be increasing pipeline and refining capacity on the West Coast. He will send the report to the Legislature. In the past, the Legislature, faced with significant local, negative reaction, has been reluctant to call for either new refineries or new pipelines.
The reaction of motorist Danny Pound is typical: "I think somebody's getting ripped off." Asked if he meant he was, Pound answered: "Yes, Yes!".
On Thursday, Washington State Attorney General Rob McKenna released the results of a $161,000 state survey.
The summary line: "This investigation did not uncover any illegal conduct in Washington."
McKenna said: "We didn't find any evidence that points in the direction of illegal conduct, such as price fixing or gouging in the United States."
So what is going on?
The study says West Coast refineries do not produce enough gasoline to keep us going.
So the West Coast has to import expensive gas (16% is the total imported, 6% from foreign sources) and that keeps prices high.
This explanation does not play well to motorist Elise Child: "I think everyone is ripping us off. To tell you the truth, the oil companies have had their most profitable year in centuries, you know."
McKenna says the reason for the huge profits by OPEC and some oil companies is that they own oil fields. He says profit margins at refineries and in distribution have actually gone down in recent months.
The Attorney General says widely varying prices from Seattle to Bellingham to Spokane appear justified by either transportation costs or border considerations. (The border considerations including higher prices in Canada leading to higher prices in Bellingham and lower prices in Idaho forcing Spokane prices down.)
The Attorney General says, if you want to blame someone, blame OPEC, which he called a price fixing cartel. "We will continue to enforce the market price rules to the extent of our jurisdiction, which unfortunately does not extend to OPEC. At the same time, we will continue to watch for any future evidence of price manipulation."
The best advice if you're upset is walk or ride the bus.
A new survey by Seattle's Sightline Institute, also released Thursday, says new figures show gas use is going down. The research director Clark Williams-Derry told KOMO 4 News: "A significant reduction in per capita consumption; that is, we are using less. In fact, we are using 10-11 percent less than we did in the '90s."
McKenna says decreased local gas consumption will not necessarily lead to lower pump prices because world consumption, particularly in China and India, is increasing and will keep oil prices high.
McKenna says one answer resulting from the survey might be increasing pipeline and refining capacity on the West Coast. He will send the report to the Legislature. In the past, the Legislature, faced with significant local, negative reaction, has been reluctant to call for either new refineries or new pipelines.