Sen. Boxer calls for probe of gas prices

www.bayarea.com Posted on Fri, Mar. 07, 2003 By Andrew Bridges ASSOCIATED PRESS

LOS ANGELES - Sen. Barbara Boxer called Thursday for a federal investigation into California's soaring gasoline prices amid concerns the market is being manipulated in ways reminiscent of the power crisis that convulsed the state two years ago.

In a letter to U.S. Comptroller General David M. Walker, the California Democrat asked the General Accounting Office to look at news reports that oil companies are taking more refineries than normal off line for maintenance. Such a move presumably would curtail the state's gasoline supply and send prices spiraling upward.

"I am extremely concerned about the rising gasoline prices in the state of California, and I call on you to investigate this situation, particularly with regard to the possible manipulation of supply due to idle refineries," Boxer wrote.

Boxer also sent letters to the state's seven largest oil companies, asking for records that show how many hours their refineries were off-line over the last four months and during the same time period a year ago.

"This is reminiscent of the electricity crisis when generators took their plants off-line for 'routine maintenance' at a rate higher than normal," Boxer wrote.

Nicole Hodgson, a spokeswoman for San Ramon-based ChevronTexaco Corp., said the company had not yet received the letter and could not comment. She did say that more than two dozen similar state and federal investigations conducted over the last two decades uncovered no evidence of wrongdoing.

"Refiners have not engaged in illegal conduct," Hodgson said.

Telephone messages left for the other companies -- ConocoPhillips, Tesoro Petroleum Corp., Shell Oil Co., ExxonMobil Corp. and Valero LP -- were not immediately returned.

The average retail price of gas in California hit $2.04 this week, an all-time record for the state. (When adjusted for inflation, however, prices are still lower than they were during the Iran hostage crisis.)

The oil industry attributes the price hike to rises in the cost of crude, now at a two-year high. Although supply remains steady, some say the jump is partly due to jitters about war in the Middle East and civil unrest in Venezuela.