Sen. Feinstein to FTC: Investigate Calif. gas prices

A man pumps gas into his vehicle at a gas station in Monterey Park, Los Angeles County, on October 5, 2012. / FREDERIC J. BROWN/AFP/Getty Images

LOS ANGELES Sen. Dianne Feinstein, D-Calif., has called on the Federal Trade Commission to investigate the sharp rise of gasoline prices in California, asking the feds to determine if illegal manipulation of the market cause the spike.

The statewide average price for a gallon of regular gasoline rose to an all-time high of $4.668 on Monday - the third record-setting day in a row.

In her letter to the FTC Sunday Feinstein said California residents need to be protected from "malicious trading schemes."

Despite a pipeline and refinery shutdown, state data shows gas production last week was "almost as high as a year ago, and stockpiles of gasoline and blending components combined were equal to this time last year," she said.

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Gas prices continue to skyrocket in Calif.

"Publicly-available data appears to confirm that market fundamentals are not to blame for rising gas prices in California," the California Democrat wrote in a letter to FTC chair Jon Leibowitz.

Feinstein asked if prices went up as a result of "an illegal short squeeze" engineered by a handful of companies that refine gas in the state, questioning Tesoro Corporation's shut-down of a refinery in South Bay for maintenance or other possible actions by gas suppliers "either through collusion or the use of market power."

She asked the commission to start monitoring the market for fraud, manipulation, or other malicious trading practices.

Spokesmen for the FTC in Washington didn't immediately return calls seeking comment.

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In some locations, fuming motorists paid $5 or more per gallon while station owners had to shut down pumps in others.

A station in Long Beach south of Los Angeles had California's priciest gas at $6.65 for a gallon of regular, according to GasBuddy.com. Meanwhile, customers at an outlet in San Pablo north of Oakland paid just $3.49, the lowest.

The dramatic surge came after a power outage at an ExxonMobil refinery in Torrance, Calif., that reduced supply in an already fragile and volatile market, analysts said. The refinery came back online Friday.

Prices were expected to stabilize in the coming days. Patrick DeHaan, senior petroleum analyst at GasBuddy.com, predicted the average price could peak as high as $4.85 before coming back down.

Gov. Jerry Brown on Sunday ordered state smog regulators to allow winter-blend gasoline to be sold in California earlier than usual. Winter-blend gas - which costs less - typically isn't sold until after October 31, so introducing it earlier should bring down prices. Few refineries outside the state are currently making summer-blend gas, putting the pressure on already-taxed California manufacturers.

Brown said the early switch should increase supplies by anywhere from 8 to 10 percent, CBS Station KCBS reports.

[polimaven]

To quote Feinsteins opponent Elizabeth Emken "Gas prices have soared to record levels and Californians have gone from sticker shock to a full blown nightmare. And what is Dianne Feinstein's response? She's calling for yet another useless investigation and demanding yet another worthless government committee.

"If Dianne Feinstein wants real answers, she should look in the mirror. Today's high prices are the logical consequence of her 'none of the above' strategy. It's common sense to ordinary Americans that restrictions on domestic energy, excessive taxes, and oppressive regulations would lead to high gas prices. But to the elite, like Senator Feinstein, that's the goal, not a flaw. She should be ashamed of what her policies are doing to Californians.

"My 'all of the above' approach to energy independence would encourage innovation and investment and use the resources at America's disposal so that we are never again at the mercy of outside influences. That's a conversation California needs to be a part of, even if Dianne Feinstein doesn't see the point."
For real practical solutions to our states problems it is time to vote Feinstein and give Emken a shot at some real change!!!

[VeggieVal]

So typical...the Left does everything they can to destroy the American oil industry - shuts down exploration on public lands, dumps 70 cents a gallon in taxes, regulates refineries out of existence, diverts $90 billion to ill-conceived "green" energy, etc etc etc - and then wants to insist that prices must be manipulated somehow.

Senator Feinstein, I'd have more respect for you if you did a victory lap and patted yourself on the back for getting exactly what you wanted. Take some credit for what your policies have wrought...I'm sure the people of your state would love to show you their thanks.

[TimeToEvo1ve]

We have met the enemy and it is the major oil corporations of America. Since they helped the Bush Cheney Crime Family regulate the economy for maximum profit we have been providing them unnecessary welfare.And you can see how their Republicon servants serve them while they get massive kickbacks to run their corrupt and fraudulent elections in the swing states.And let's not even talk about the oil company propaganda about the fact of man made global climate change. The oil corporations steal our money and then use it to pay for their corporate media propaganda. WOW!

[In2theDark]

Big oil....Bend over I'll drive.

[TimeToEvolve]

We have met the enemy and it is the major oil corporations of America. Since they helped the Bush Cheney Crime Family regulate the economy for maximum profit we have been providing them unnecessary welfare.

And you can see how their Republicon servants serve them while they get massive kickbacks to run their corrupt and fraudulent elections in the swing states.

And let's not even talk about the oil company propaganda about the fact of man made global climate change. The oil corporations steal our money and then use it to pay for their corporate media propaganda. WOW!