The review was conducted by the Attorney General's chief economist Tom Bodin. He asked the stations to provide information for the pricing review including the wholesale prices paid for the gasoline [image-nocss] sold on April 25, prices paid during the prior week and any other factors that contributed to their posted retail price.
The stations that have responded to the inquiry include a Circle K and a Phillips 66 in Indianapolis. After an analysis of all market factors including state and federal taxes, credit-card fees and operating expenses, the AG's analysis concluded that the per-gallon retail price was justified. A review remains pending on a Speedway station.
Since 2003, the Indiana AG's has monitored prices of gasoline sold at the retail level and compares the pump prices to the local and state averages, trading prices on the futures market and other statistical data. Current research indicates that price movements within Indiana, though drastic, are in line with price fluctuations occurring across the country which are affected by a dynamic global market and complex economic factors.
Separately, in Juneau, Alaska, State Representatives Pete Petersen (D) and Chris Tuck (D) and Scott Kawasaki (D) have sent a letter to U.S. Attorney General Eric Holder asking that he investigate Alaskan fuel prices as part of his investigation of nationwide gasoline prices.
"Alaska produces more oil than most countries, but Alaskans still pay more at the pump than anyone else in the U.S. Something's not right," said Petersen. "Any investigation into high fuel prices should certainly include a hard look at the situation in Alaska."
Last week, Holder announced that he will conduct an investigation of gasoline prices in the United States. (Click here for previous CSP Daily News coverage.)
Since 2008, Alaska has consistently had the highest gasoline prices in the nation, they said. According to a May 26 report from AAA, the average price for a gallon of gasoline in Alaska is $4.10, excluding state taxes. The next highest state is Hawaii at $4.08, which has no oil production.
"In Fairbanks, the high cost of heating fuel is crippling," said Kawasaki. "We need to get to the bottom of this before Fairbanks families have to face another winter wondering if they'll be able to afford to heat their homes."
The legislators included copies of reports by the Alaska attorney general, Legislative Research Service and the House Judiciary Committee to give the attorney general information about Alaskan fuel prices.
"Lower prices for gas, diesel and heating oil would greatly benefit Alaska's economy," said Tuck. "Alaskan families would feel relief from high gas prices, and businesses would have lower costs."
Tuck, Kawasaki, and Petersen have been working for years to lower fuel prices in Alaska, they said. This year, along with Rep. Les Gara (D), they introduced House Bill 25 to prohibit Alaskan oil refineries from charging excessive or exorbitant prices for gasoline, diesel and heating oil.
Click hereto read the full letter.
Click here to read the Alaska AG's gasoline pricing report.
Click here to read the Legislative Research document.
Andclick here to read the Alaska House Judiciary Committee document.
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