SANTA MONICA, Calif.,
Feb. 27, 2015 /PRNewswire-USNewswire/
-- Gas prices have jumped up 80
cents a gallon in California since refinery shutdowns and
slowdowns began on February 1, and
17 cents in Los Angeles overnight, making just announced
California Senate hearings even
more urgent, Consumer Watchdog said today.
"There is just no good explanation for why consumers are paying
this much at the pump," said Consumer Watchdog President
Jamie Court. "When there are
shutdowns, refineries make money hand over fist and now we have a
much needed investigation into whether this could be the result of
artificial supply manipulation. Oil company executives should be
subpoenaed to answer for these outrageous price spikes."
Refineries in the state have great market power because they
keep a small supply of our special blend of fuel. California keeps less than half the days of
refined gasoline supply on hand from the rest of America—10 days
versus 24 days, according to the California Energy Commission. And
refineries do not stagger periods of maintenance when operations
are not running at full tilt.
On February 1, when the nationwide
steelworkers strike loomed, Tesoro announced that it would close
down its Martinez refinery for
"safety" reasons, rather than leaving it running at half capacity
while it performed seasonal maintenance. But at an investor
conference in mid-February, CEO Geoff
Goff assured investors, "We can keep running with the
staffing levels that we have…for a very long time."
"Contract workers have been available to fill in at refineries
on strike, including Tesoro's refinery in Carson, and skilled retirees can also be
brought in to run what amounts to a giant pressure cooker," said
Consumer Advocate Liza Tucker. "Once a refinery gets going,
the conventional wisdom is it doesn't take that much to keep it
going. The Senate needs detailed answers to a question for Geoff
Goff—why did you need to shut that refinery down if you are telling
investors refineries can keep going with lower staff levels
indefinitely?"
Senate Pro Tem Kevin de Leon's
announcement of hearings came in response to Consumer Watchdog's
repeated urging that state officials investigate refineries for
price manipulation. California's
Attorney General and other state officials have not yet responded
to the group's request.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/alert--la-gas-prices-jump-17-cents-largest-overnight-spike-in-two-years-as-consumer-watchdog-calls-for-senate-subpoena-of-tesoro-ceo-300043102.html
SOURCE Consumer Watchdog