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21 california refineries probed in gas increases Original Source Link: (May no longer be active)
http://www.timesheraldonline.com/ci_3766848http://www.timesheraldonline.com/ci_3766848
Benicia refinery among 21 probed in gas increases
By DAN JUDGE/Times-Herald staff writer
Attorney General Bill Lockyer subpoenaed documents from all 21 California oil refineries on Friday, including Valero in Benicia, as part of an investigation into recent gasoline price increases.
"We're looking at the profit margins of the oil companies," said Tom Dresslar, spokesman for the Attorney General's office.
"We want to find out to what extent the profits are justified and lawful and the extent to which they may be unlawful and represent just pure profiteering and gouging of consumers."
Five of the largest California refineries are in the Bay Area - Valero, Chevron-Texaco in Richmond, ConocoPhillips-Rodeo in San Francisco as well as Shell and Tesoro Golden Eagle, both in Martinez.
Valero representatives did not return calls for comment Friday.
Dresslar said the Attorney General's office has expanded the scope of its previous investigation, which focused exclusively on anti-trust efforts.
Anti-trust enforcement requires Department of Justice investigators to find concrete evidence of collusion between the oil companies, Dresslar said.
Now other enforcement options are being explored, he said, including potential charges of unfair business practices and fraud.
He added that any information found under the current subpoenas could lead to more.
"This is the first round," Dresslar said. "Subsequent requests for information are likely."
According to information released by Lockyer's office, the seven largest oil companies in California control more than 95 percent of the state's refining capacity and California refiners' profit margins have far outstripped the national average.
According to the California Energy Commission, the current difference between what the price oil companies pay for crude oil and the price consumers pay at the pump is 130 percent. The price for crude, however, has only risen 14 percent, according to Lockyer's office.
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