Posted on 06/06/2006 10:58:11 AM PDT by LouAvul
California's Attorney General has begun hauling the CEOs of major oil companies into his office - demanding, in closed door sessions, that those executives tell him, under oath, why gas prices are higher in California than almost anywhere else in the nation.
"This is legal thievery in my view," California State Attorney General Bill Lockyer told CBS News correspondent Sandra Hughes. "It's because it's an oligopoly: it's when you have a handful of companies, seven exactly, that control almost the entire California market."
Those companies insist they're operating within the law, and not trying to gouge their customers. California drivers pay an average of $3.31 a gallon, up more than a dollar since early January, when they were shelling out an average of $2.25 a gallon.
The attorney general is also taking a hard look at refiners' profit margins, which soared by 130 percent at a time when the price of crude oil increased by 14 percent.
"Their claim is 'Oh, we're just passing along the world crude oil increase.' That's clearly not true," says Lockyer.
What is true, according to the California Energy Commission, is that estimated profits have risen from around 30 cents a gallon at the start of the year to about 94 cents per gallon now.
(Excerpt) Read more at cbsnews.com ...
No, I didn't think so.
(sarc=off)
Isn't EVERYTHING more expensive in California?
I'm pretty sure I know why they're closed door sessions - wouldn't want the sheeple to hear the answers...
This should be interesting trying to educate an Attorney General about the free market and the NIMBY signs along both coasts and Alaska. Now what do you not understand, General? :-)
The major problem in Commifornia is its requirement for "boutique" gasoline blends, rather than traditional unleaded.
Could it be the extra hoops the companies have to go through to satisfy the required formula for this state?
We have near 70 formulations in the country and I think we should get it down to two for each grade and no more.
Atlas is not only shrugging he's doing backflips and cartwheels.
If they really want an answer they should summon California Democrats rather than oil executives. California tax on gas is among the highest in the nation.....
"We have to make a Special fuel for the Special people of California"
But...but...isn't this is what the CA libs want? The air is cleaner! People are riding bikes and rubbing sticks together for fuel!
Bingo! If California allowed gasoline refined outside of the state into the market, the prices would drop. California only allows gasoline refined inside California and mandates a bunch of boutique blends.
Wups, sorry, guess it wouldn't. Lockyer's an ARCH-'Rat, and that would be a true answer.
Clearly impossible.
No, but it JUST might have something to do with the fact that he's running for state Treasurer in today's primary. Don't know the polling numbers (never much of a poll cat), but I'd bet dollars to croissants (we ARE in Cali-phony-a, after all) that he's behind!
But, it's for the children/sarc
"California's Attorney General has begun hauling the CEOs of major oil companies into his office - demanding, in closed door sessions, that those executives tell him, under oath, why gas prices are higher in California than almost anywhere else in the nation."
Maybe it's because the CA state government is more overbearing in its regulation than any other state in the Union.
I don't know of any other state that would pull this stunt.
1] the price of gas including costs for "botique"
environmental blends and additives, and without
ethanol - and note they can't sell it!
2] the price with all of the above.
The AG wants his cake and eat it too. If I were an oil company CEO called onto the carpet, I would suggest building refineries in California and allowing offshore drilling, just to watch him scream.
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