Posted on 06/27/2007 1:32:58 PM PDT by Santa Fe_Conservative
State’s average second highest in the nation
Never mind red or green. The attorney general has a new state question: Why are New Mexico’s gasoline prices higher than the national average?
State Attorney General Gary King has sent a letter to petroleum suppliers, distributors and retailers, asking them to respond by July 25 with reasons for the higher prices.
He also asked industry representatives to suggest how the state and federal governments could help address price disparities and high prices.
“Recognizing that there are many factors contributing to the retail price of motor fuels in our state, I still believe consumers have a right to know why prices are so high, why New Mexico gasoline prices continue to rise above the national average and what to expect to pay for gasoline and diesel in the future,” he said.
King isn’t the first New Mexico attorney general to investigate pump prices in the state.
In 1993, U.S. Rep. Tom Udall, D-N.M., then attorney general, launched an investigation.
After a yearslong legal battle with distributors over access to information, the office released a report in 1996 that did not find evidence to support any charges of illegal price-fixing.
King’s recent letter noted New Mexico’s average gas price was below the national average in March, but recently the state won the dubious honor of having the second-highest average prices in the nation, second only to Hawaii.
“Even with decreasing prices at the pump, New Mexicans are experiencing significant increase relative to other Americans,” he wrote.
On Tuesday, New Mexico’s average was $3.20 a gallon, while the national average was $2.97 a gallon, according to AAA New Mexico.
In his letter, King asked whether refineries that supply the state might be part of the problem.
King sought explanations for why fuel prices have risen so much since January 2006, why they’re higher here than elsewhere and what prompted disparities between gasoline and diesel prices. He also wants the industry to explain how prices to customers compare to those of five years ago and how the industry’s own price has fluctuated.
A 2007 House joint memorial asked King’s office to look into price disparities and fluctuations.
Santa Fe gas prices are often higher than those in other New Mexico cities.
For example, on Tuesday, Santa Fe’s average price was $3.20 for a gallon of regular unleaded, according to AAA New Mexico. However, some Santa Fe stations were selling gas at cheaper prices. The average price in Albuquerque was $3.13, and the average price in Las Cruces was $3.18.
The answer here is obvious, and what is also obvious is that nothing (in regards to government relief) is going to happen. Give up some fuel tax revenues? No way!
Producers will charge - above their cost - whatever they think the consumer will pay to gain the greatest amount of profit.
Period.
It could be that the two tiny refineries in NM don’t run more than teacup of crude oil in any given day. Plus the crude is delivered by truck vs. pipeline.
Yes he investigated for eight years and nothing came of it. While NM is a producer of crude oil it only has one refinery in the state. Almost all of it, except that which is sold at Giant stations, must first go out of state for refining then back into the state as a finished product. Given the long distances between towns my guess for the higher prices is because of distribution cost. Not to mention taxes.
Everybody in the world uses energy, oil, etc. They pay for it too.
The Muslims have much if not most of the oil in the ground. They hate us. Fruitcake Chavez who also has a lot of oil hates us too. They charge a lot of money for the oil because they can. They’re not nice guys. They may kill us with our own money. They don’t like us.
Diamonds, Rolex watches, Ferrari's and Lamborghini's, caviar and lobster, and Romanee Conti Burgundy and Chateau Petrus are also very high priced.
Personally I think someone should just give me some of those things, I deserve them, but, gosh darn it, they don’t. Life is sooooo unfair.
Got it Mr. A.G? Sit down and think about it.
It’s the market stupid.
Yes it not only might be, but is the problem.
The US hasn't had a new refinery brought online for 31 years. The problem is that there are so damned many restrictions placed on new refinery construction and operation that it is no longer economically feasible.
King can blame his own party for the reason for the high prices...not only because of lack of refining capacity, but because we are unable to drill and pump our own petroleum out of our own land and sea.
Many of the jackass RepublicRATs can be blamed as well.
Do these simpletons actually find a mystery here?
When Americans finally come out of their permanent siesta and recognize fact when they see it they will then be enlightened to the point of understanding that the USA can provide 100% of their current needs if only our enemy the federal government and the politicians we keep electing would take a hike!
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