Gov. Arnold Schwarzenegger on Monday ordered the California Energy Commission to investigate the recent spike in gasoline prices.
“What concerns me the most is that there seems to be no relief in sight,” Schwarzenegger wrote in a letter to commission Chairman Joe Desmond. “While many economists cite that the theories of supply and demand are at play here, we must not rule out the possibility of market manipulation, price gouging or unfair business practices employed by oil companies. The citizens of California deserve a vigilant watchdog over this market and a full blown analysis to determine to what extent the behavior of big oil companies is driving these record-high prices.”
The average price of a gallon of self-serve regular gasoline in the Los Angeles area climbed for the seventh consecutive week, rising 16 cents to $3.081 f or the week ended April 24.
L.A. prices are 50 cents higher than they were a year ago, according to the Energy Information Administration. Statewide, prices rose 17 cents from the previous week to $ 3.068, up 50 cents from a year earlier.
Previous investigations of gasoline pricing by the California Legislature, the Energy Commission and the state Attorney General’s office that were looking for evidence of market manipulation have been inconclusive.