SANTA MONICA, Calif., Febr. 26,
2015 /PRNewswire-USNewswire/ -- Consumer Watchdog said it looked
forward to working with Senate lawmakers who today set hearings for
March on possible refinery price manipulation, as the group had
requested.
"Gas prices have gone up 70 cents
so far since refineries started shutting down and it is high time
we had refinery executives on the hot seat to answer questions,"
said Consumer Advocate Liza Tucker. "We have a long list of
questions. And if the Senate doesn't get the answers they are
asking for, we are hoping they will issue subpoenas."
Consumer Watchdog has called twice this month for the
California Attorney General and
other officials to investigate possible price manipulation, but has
not yet received an answer.
For the letters, see:
http://www.consumerwatchdog.org/newsrelease/consumer-watchdog-urges-ca-attorney-general-and-regulators-investigate-tesoro's-martinez
http://www.consumerwatchdog.org/resources/refineryletterfeb18.pdf
Tesoro announced it would shut down its Martinez refinery fully, rather than continue
to partially operate, in the face of a steelworkers' strike at the
beginning of February. The explosion and fire at Exxon's
Torrance refinery that came on the
heels of the Martinez shutdown
helped prices spike more.
"Tesoro's potentially unnecessary closure of its Martinez facility in the face of a
steelworkers' strike, and shoddy business practices at refineries
like Exxon's, have tripped off a sharp rise in gas prices," said
Consumer Advocate Liza Tucker.
The shutdown of Tesoro's Martinez refinery, paired with damage to the
Exxon Torrance facility, affects 16.5 percent of the state's
refining capacity. The state's refineries make virtually all of the
gas sold in the state because of California's special blend requirements. The
refineries also keep only a ten-day supply of gas on hand, while
refineries in most other states keep an average supply of 24
days.
"On this isolated gas island, it is easy for refineries to pull
the strings and restrict supply, or to create the perception of a
shortage, in order to capitalize on windfall profits," said
Tucker.
Refineries must also be willing to invest properly in
infrastructure to prevent accidents and shocks to gas prices,
Tucker said. "It's outrageous that refineries that make huge
profits off of consumers do it at the expense of consumer safety,
and that a culture of non-enforcement of tough environmental laws
makes paltry fines that regulators levy just a cost of doing
business."
In its December report, Pump Jacking California's Climate
Protection, Consumer Watchdog warned that oil companies might
artificially cut back on gasoline production and inflate gasoline
prices to undermine new rules to control greenhouse gas emissions.
The report can be viewed here:
http://www.consumerwatchdog.org/resources/OilIndustryManipulationReport.pdf
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/senate-lawmakers-to-hold-hearings-on-possible-refinery-manipulation-of-gas-prices-via-shutdowns-and-slowdowns-answering-call-from-consumer-watchdog-300042577.html
SOURCE Consumer Watchdog