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Energy officials search for reasons for gasoline price spikes
Anna Oberthur Associated Press writer
California residents are being urged to drive their cars less to help stem the rapid increase in gas prices throughout the state.
“The bottom line is, for this summer we are going to have to do like we did during the energy crisis and make conservation and reducing demand something that we talk about everyday,” John White, executive director for the Center for Energy Efficiency and Renewable Technologies, said April 1. “People need to get the link between the price and the demand.”
Many factors were blamed for California’s gas prices, which are about 20 cents higher than the national average and often more than $2 a gallon. California Attorney General Bill Lockyer and energy officials told a California Assembly committee that lack of competition, a stagnant supply and too many cars on the road are contributing to the skyrocketing cost. Highest prices in San Diego San Diego has the highest gas prices in the country, at $2.12 for a gallon of regular unleaded.
“I frankly cannot pretend that we will have any magic bullets to make thing better. Clearly there are factors beyond our control,” said Assembly Transportation Committee chairwoman Jenny Oropeza, D-Carson, citing the OPEC cutbacks announced March 31 and burgeoning demand for petroleum products in China and India.
A lack of competition between oil companies is contributing to the price spike, Lockyer said.
Although he has investigated price fixing in the industry, Lockyer said he’s never found evidence of unlawful conduct. Population growth stresses gasoline supply As the population of the state grows, its gasoline supply has become stressed, said California Energy Commissioner James Boyd.
The state needs to look at alternative fuel, increase the use of hybrid vehicles and look for ways to increase the fuel efficiency of its cars, Boyd said.
Another factor contributing to costly gasoline is California’s cleaner burning fuel requirements.
California should pursue a waiver of the federal government’s requirement that gasoline contain an oxygenate like ethanol, a step that would reduce the cost of gasoline 3 cents a gallon, said Rob Oglesby, legislative director for the California Air Resources Board.
California officials have sought unsuccessfully for more than two years to get a waiver from the requirement, which is supposed to help reduce pollution. State officials argue that because of California’s cleaner-burning fuel, the additives are unnecessary and costly.
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