Probe of Pump Prices Vindicates Oil Industry
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Re: “Spike in California Gasoline Prices Had External Causes, Panel Says,” Nov. 19:
The take-home message in the most recent investigation of the petroleum industry might surprise your readers.
It is that the industry, along with state, federal and international governments, helped to increase supplies and moderate gasoline prices for consumers. This was in the face of unprecedented destruction of production rigs, refineries and other infrastructure because of hurricanes Katrina and Rita.
The California Energy Commission conducted the investigation. It examined charges that price gouging drove the recent increases in pump prices. The commission said that was not the case. Instead, it found the fury of nature coupled with identifiable market forces affected retail prices.
Once again, investigation of the petroleum industry by a capable, unbiased government agency has identified market forces, not industry practices, as the reason behind price movements.
Joe Sparano
President
Western States
Petroleum Assn.
Sacramento
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