Do Local Refineries Play a Major Part in High West Coast Gas Prices?

With gas prices at West Coast pumps higher than those elsewhere in the country, some in the federal government are asking if recent refinery closures on the West Coast are the result of a coordinated effort by the companies. One Congressperson has called for an investigation into the charges, though the companies deny that such collusion exists. 

Gas prices are an average of $3.45 per gallon in Michigan, $3.35 in Florida, $3.35 in Texas, and $3.65 in New York City. In Piedmont and Oakland, gas prices are well over $4 per gallon. 

Sen. Maria Cantwell, D.Wash, has asked the Federal Trade Commission to investigate Shell, Tesoro, Conoco-Phillips, Alon, Chevron and BP for possible collusion into raising the price of gas, according to a story by McClatchy News Service.

Along with other temporary West Coast shutdowns, critics cited Tesoro’s refinery in Martinez, repairing a hydrocracker, a high-pressure processing unit, from May 2 to May 13; Shell’s refinery in Martinez undergoing maintenance from April 27 to May 16; and Chevron scheduling seasonal maintenance in Richmond, on May 28.

Also affecting supply was a fire the ConocoPhillips refinery in Rodeo.

Refinery spokespeople say prices are the result of market demand, and not collusion.