Petroleum Industry Responds to Energy Commission Report on Gasoline and Diesel Prices

    TORRANCE, Calif.--April 2, 2003--The Western States Petroleum Association today released the following statement from its President, Joe Sparano, in response to the California Energy Commission's newly released report on the causes of increases in gasoline and diesel fuel prices:
    "WSPA is pleased that the CEC's report generally confirms what other government agencies have already concluded: recent price volatility in gasoline and diesel fuels is attributable primarily to the unusually high cost of crude oil on the world market, as the price of crude nearly doubled in the past year. The CEC also noted other widely reported market, supply and demand conditions as contributing factors. Significantly, the CEC has concluded that an investigation by the Attorney General is not warranted at this time.
    "WSPA and its member companies understand Californians' concerns about the recent volatility in gasoline prices. We will continue our efforts to maintain a constructive public dialogue addressing those concerns."
    The CEC conducted its examination at the request of Governor Gray Davis. It is the latest of some 25 state and federal investigations conducted over the last several decades, all of which found no evidence of anti-competitive or illegal activities on the part of the petroleum industry. Most recently, the U.S. Energy Information Administration reported on March 12 that, in its opinion, consumers were not being "gouged" at the pump.