Alaska to open investigation into high gas prices
Published Saturday, August 30, 2008
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Stumble It!ANCHORAGE -- State lawmakers will start investigating why gas prices are so high in the state.
House Speaker John Harris on Friday sent a letter asking House Judiciary Chairman Jay Ramras to open an investigation.
Specifically, Harris asked Ramras to look at why Alaska prices are not falling as fast as they are in the Lower 48.
Harris says the average price of a gallon of gasoline in Alaska is $4.50 or more, while it's fallen to an average of $3.68 elsewhere in the country.
"It just doesn't make sense to me - and to other Alaskan consumers - that when the price of crude oil goes up, the price at the pump goes up, too, right away. Yet, when the price of crude goes down, the price at the pump is a lot slower to drop," Harris said.
Motorists will soon get a break at the pumps, courtesy of the energy relief package passed by the Legislature. Part of the plan is eliminating the 8 cents a gallon state tax for a year.
That starts Monday, but consumers may not get immediate relief. It will start only after retailers clear inventory and start selling tax-free fuel from their suppliers, said Ed Sniffen, a state assistant attorney general who specializes in consumer protection.
He said retailers also are on the honor system to pass the break along to motorists.
Democratic lawmakers and Gov. Palin asked Attorney General Talis Colberg to look into gas prices. Sniffen has started that investigation, and says of recent gasoline pricing trends: "It's really looking fishy to me."
Petroleum economist Barry Pulliam of the Los Angeles consulting firm Econ One has been hired to help with the investigation. Sniffen said formal demands for records from refiners and others might be issued, Sniffen said.
"That's fine. We wish them the best. We'll help," said Kip Knudson, spokesman for Tesoro Alaska Co. Tesoro makes much of the state's gasoline at its Nikiski refinery, and it owns or supplies dozens of gas stations.
Knudson said the investigations will likely show the high prices are the result of market forces. Prices aren't dropping here as fast as other places because Alaska is a smaller market, and "smaller markets tend to be slower in response."
Sniffen said that could be because competition is not as intense in Alaska as the Lower 48.
"There's never an incentive to drop prices unless your competitors are dropping prices," he said.
Community Discussion
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Re: "Prices aren't dropping here as fast as other places because Alaska is a smaller market, and "smaller markets tend to be slower in response."
Going up doesn't seem to be a problem for these folks.
Also, I've been on auto-fill for nearly 15 years. It strikes me as odd that this year the fuel truck showed up the first week in August (just before prices started coming down). In the past they have topped us off up in October.
Do you think they know something we don't...lol...I feel the screw but no kiss....bastards...I hope they find that they have been gouging us and put the screws back to them but twice as deep into their pockets as they are doing to us. Name names to the public for ridicule so we can laugh back at them for we know they have been laughing at us while going to the bank.
It's about time...they must have finally read the letter's to the editor.
Can't believe it has taken so long.
These damn investigation never and I mean never have accomplished one thing other than spend more money. They are alway initiated but can anyone out there ever remember the final out come of any? (thats reported) It is merely political hogwash!
I am glad they are gonna investigate we are paying way to much for gas compared to the lower 48. Oil is going down but does the gvea bill hell no. Why not if they use diesel and pass the high price of it on to us when will see a drop in our electric bill seeing how the price of diesel is going down. I got a friend in california and he pays 3.70. He asked me how low our prices have dropped and then couldnt stop laughing when i told him we still pay 4.40. We are being gouged plain and simple i dont care what anyone says so i hope they investigate and find the truth why we are still paying so much at the pump.
I doesnt matter becuase the prices are going to go up becuase of the hurricane. How can a hurricane in the Gulf of Mexico effects Alaska gas prices? Just watch.
I just paid $3.52 today in Ky. A guy who is moving to Fairbanks was told the gas prices were 8.00 to 9.00. I told him it's around $4.50 and he said that was not too bad. I also am waiting to find out who the hurricane will affect gas. It changes from the morning to the afternoon and again sometimes in the evening. One time it was as much as 25 cents. Can't always figure that out. We will see
Yes and now we don't have a gov. to do anything even if something were to come out of an investigation.Oh,don't ya worry Johnie & Sarah are going to open ANWR then every thing will be all right!More money to put into PFD and more to hand out as energy relief so what are we ALASKANS bitchin about?We should thank Master for taking pity on the pe-ons like us.
energy prices are still cheap here in Amerika, no one makes you buy any gasoline, so what's the beef?..don't like the price don't buy it.
The retailers, distributers and refiners can charge whatever they want. They are not regulated. Nor should they be. They charge what the market will bare and they charge enough to make a profit. If they don't, they go out of business. If they go out of business, we will freeze in the dark.
Although I know little of Flint Hills financial situation. The news stories have led me to believe that they are having a hard time. I remember one story where an Air Force official said that they were paying $2.20 a gallon for jet fuel. So if Flint Hills have a contract like that, it is no wonder they are in trouble. We are all paying extra to make up for the Air Force's good deal.
There have been very few times that Fairbanks has had fuel prices on par with Anchorage or the lower 48. People here pay more for nearly everything. The higher cost of living is nothing new. Most of our wages, including the minimum wage is higher too. I don't hear much complaining about people making too much money.
Probably the best action you can do to lower fuel cost is to conserve, increase efficiency and look for alternatives. High petroleum prices are the incentive.
Now, if I just could get cheap, clean, hydro-electricity to heat our home, I could kiss the fuel oil delivery woman goodbye. Let's build the Susitna Dam.
I was just down on Whidbey Island at a relatives' home; the fuel prices there were running at $3.77 to $3.97/gal. Not sure how the fuel distribution works for them down there; I know fresh water is pipelined from the mainland.
Had to snicker at Ramras' slogan sign when I got home, "First gas in 5 years". Made me wonder if that's his problem, LOL!!
Will be interesting to see the results; other than the obvious fact we are being gouged.
I'll save the $$ for an investigation. The reason the prices are high is because anyone involved in this industry is GREEDY. So quit being GREEDY and drop the prices just like the lower 48 and we'll be happy! ONCE AGAIN, QUIT BEING GREEDY AND DROP THE PRICES AND INSTEAD OF BEING BILLIONAIRES, YOU'LL HAVE TO SETTLE BEING MILLIONAIRES!
The only thing that will be found through this investigation is "it's market driven". Now, if it wasn't that I needed gas or fuel, it wouldn't a problem. BUT, it's a necessity and up here in Alaska during the winters, it's a LIFE AND DEATH situation.
It's a monopoly. so long as the state gets it's money from taxes it's ok. Then, to create a "warm fuzzy", they give you a check.
I have an idea. If we can't have a STATE owned Refinery, what about a STATE OWNED Fuel Station.. and yeah, you basically determine it based upon who has an Alaskan Drivers license and/or Vehicle registered in the State. DON'T allow Rental Vehicles, or even Commercial vehicles (businesses get tax write-offs). NOTHING but Fuel... No candy, cigarettes. Heck, won't even need an attendant except to help disabled, elderly,and pregnant...
You saw the answer here-no real competition.
How will a gas refinery or station in Fairbanks benefit Sitka, Dutch Harbor, etc.. How could you have these communities paying the same price as Fairbanks or Anchorage. Don't use the argument about Anchorage natural gas, that contract happened years ago when Fairbanks had under a dollar heating fuel. Anchorage holds the votes in the legislator and they will be the ones who determine what happens to the rest of the State.
I think something needs to be done since the gasline is being refined in some place right out of the pipeline.
I have a feeling this issue is gonna be put in the spotlight by Palin.
I"ll believe it when I see it.
Good it damn well should. If she hadn't become Governor this investigation would have never happened. She changed everything and for the better. She's gonna knock 'em dead. It's shameful that the prices are still so high. They should be not only investigated but if it turns out that they were gouging they should be fined out the rear end.
The state has been selling OUR royalty oil to US at world market prices. That is bs. They need to establish an Alaska market. They are sitting on a bankroll of OUR money as a result.
Steve_Estes: "If they go out of business, we will freeze in the dark."
I think we would be a little more resourceful and reopen the refinery to keep from freezing. In the process, we could actually stop producing jet fuel and produce enough gasoline and low sulfur diesel to fuel everything north of the Alaska Range except airplanes. We can survive without international flights.
Does anyone else think it is a little coincidental that the fellow doing the atual investigating is named Sniffen?
We need a price gouging law because price seems to go up the same day as crude price goes up; but never falls the crude price goes down.
I notice the filling stations on the East side seem to very often have identical prices!
In my opinion there is price fixing going on.
The basic crude royalty oil price is set according to this statute:
AS 38.05.183. Sale of Royalty.
When the Sarah was elected the royalty oil crude price was $33. Today, it is around $120 about 6 times more.
The state can reduce the royalty oil price back to $33 dollars and the price should be around 75 cents per gallon.
Since the royalty crude price you are paying for your property is fixed by the legislature --- it can be changed by the legislature. You are now paying 3-4 dollars hidden tax on each gallon of oil.
By the way, re: the $10 billion sitting in the bank in Juneau, with Sarah gone, it is up for grabs.
The vultures are hovering.
You, better ask your legislatures how they plan to spend the money and get their reply in writing, because the cesspool of corruption is still in tack.
The $10 billion can be rolled into the Permanent Fund principle and expand the dividends about 20% in a few years.
It can be used for a power line to slope to deliver low cost electricity to to the rail belt. About a 1 year project.
Or building wind, hydro and geothermal power plants to make living in Alaska affordable.
Electricity should be about 2 cents per KWH; not 23 cents
Also, some filling stations have 30,000 gallons of storage if they keep the 8 cents they just made $2,400 profit.
It says in the article that the retailers are on the honor system to pass the savings for the State Sales tax along to the motorists. As I see it there seems to be no honor amongst the retialers. The increases have been passed on, but the price reductions have not. So where is the honor to begin with?
While they are at it they can investagate GVEA,membership fee $15,fuel surcharge $45 and actual bill for electricty used $52.Paying more for the ad ons than i'm using in electricity.
there is no mystery. they are causing us to spend $*(@(*&#*( I$#()*@&#*()@&(*#&(*&@$#(&@U#(&@$#(*@$&*(@$&(*@$&(*@$&_A!#(_)!#(_
Revenue to the state is up, prices are about $.90 per gallon higher than the national average, profits to the refinery, TAPS, and producers are up. End of investigation. Instead of looking at the symptom, identify solutions, draft some legislation, and get on with moving forward a comprhensive energy plan.
I feel your pain maxwell, my $172.95 bill breaks down to:
Energy Charge 778 KWH: $88.61 (actual cost of energy used)
Customer Charge: $15 (covers cost of meter reading billing, customer service, and information)
Fuel Adjustment: $69.06 (tied to the price of fuel to generate or purchase power)
Regulatory Charge: $.28 (for Alaska Regulatory Commission funding, are we really funding a state commission through our electric bill?)
My question is that if the energy cost $88 then why are all of the other fees also being charged? If it costs GVEA $69 for the fuel to generate the power or purchase that power shouldn't that be the cost to the consumer? The $15 per customer covers all other services. It looks like a double billing scam to me. $.11 per KWH looks better than $.22 per KWH on their billing. The rest is probably tax deductable.
Alaska has been taken over by big business.. I guess there is no good reason to endure 60 below now. Maybe we were stupid in the first place. Why would we choose this?
Same ol' same ol'
Big business is just acting like it ALWAYS has (catering to their fellow rich and scorning the people who make them millionaires/billionares)
Why is it that places in south America pay less than $2.00 a gallon?
(Caracas, Venezuela- $0.12 per gallon, thats TWELVE(12) cents per gallon!)
Americans tolerate being charged twice as much for something that we produce in our own country, you would think that ALL our oil products are imported from the amount we have to pay.
(Even Puerto Rico only pays $1.74 a gallon)
It's most of the population in America that is at fault for this recession, it's supposed to be OUR country, NOT big businesses or the Saudi's or even GWB's. (lol- some of you would probably disagree about that last one).
Americans USED to not tolerate things like this (basically profiteering on a LARGE scale with even our own president involved, who just happens to be part of an oil rich family that who also "just happens" to be VERY close with the Saudi royal family, dubya has ran his daddies businesses into the ground and now it's time for our entire country, my opinion)
here is dubya's corporate track record-
* Arbusto, an oil exploration company, lost money, but it got considerable investments (nearly $5 million) because even losing oil investments were useful as tax shelters.
* Spectrum 7 Energy Corp. bought out Arbusto in 1984 and hired Mr. Bush to run the company's oil interests in Midland, Texas. The oil business collapsed as oil prices plummeted by 1986, and Spectrum 7 Energy was near failure.
* Harken Energy acquired Mr. Bush's Spectrum 7 Energy shares, and he got Harken shares, a directorship, and a consulting arrangement in return. Harken, under Bush, brought in Saudi real estate tycoon Sheikh Abdullah Bakhsh as a board member and a major investor. Over the next few years, Harken would turn out to have links to: Saudi money, CIA-connected Filipinos, the Harvard Endowment, the emir of Bahrain, and the shadowy Bank of Credit and Commerce International.
A 1991 internal SEC document suggested George W. Bush violated federal securities law at least 4 times in the late 1980s and early 1990s in selling Harken stock while serving as a director of Harken. This is essentially the same kind of activity that Martha Stewart is going to prison over. Except at the time of the investigation, Mr. Bush's father was president and the case was quietly dropped.
It's not helped by zombie consumers who don't even think about it when prices keep going up....and up....and up...and UP while Tesoro's, Conoco's, and BP's pockets (out of state companies with refineries here) keep getting fuller and fuller and FULLER, it just shows the way people are these days and it's disgusting.
Here is a link to an interesting page about our current president/lord/business flunkie-
http://alaric3rh.home.sprynet.com/scienc...
LostAlaskan99712....
Hollywood can only approximate Reality...
http://www.google.com/search?gbv=2&n...
...
http://www.google.com/search?gbv=2&n...
...
http://www.google.com/search?gbv=2&n...
Ok, I can tell your links are basically about Bush, Paraguay and diamonds from Yellowknife with a connection to Israel.........
Are you trying to say that he is going into the diamond business?
I'm just amazed that people actually WONDER why we have an economic recession after looking at the way "Boy Bush" runs a business, he's nothing more than a spoiled rich boy who wanted to be president for FUN that got incredibly LUCKY.
lol, now regular people are struggling to survive because of those gullible sheep that elected him into office and, of course, the sheep are told "we're fine, bush is god" and they simply nod their head in utter complacency to WHATEVER they're told without ever a second thought.
REAP WHAT YOU HAVE SOWN AMERICA, All you people that voted for Bush got DUPED (BIG time).
But I guess economic times were too good, the dollar was worth too much and gas was too cheap, in those regards Bush did a fine job to change things.
For all of you in Fairbanks who are complaining about fuel prices, just a reminder that the interior pays much more. In Healy, the price has been as high as $5.69 a gallon and is currently from $5.00 - $5.39 a gallon. You could have it worse.
Let's compare apples to oranges.
A gallon of milk costs the same in Fairbanks as it does in Washington but a gallon of gas costs almost a dollar more.
This simple fact blows most excuses from the refiners and retailers right out of the water. It certainly does not cost less per gallon to ship 1 gallon containers vs. 1,000,000 gallon tankers. We don't buy more milk than Washington residents do we?
At least our leadership is listening to us for once.
Should that State of Alaska investigate our gasoline prices?
Yes 95.22 % (219)
No 4.78 % (11)
Undecided 0.00 % (0)
Total votes: 230
www.fairbanksgas.com
Raytech63 is correct; the reason our prices are and stay so high is greed, greed, greed.
I drove through South Carolina last week and paid $3.38 per gallon. At home, near Fairbanks, I can see the pipeline from my living room window-the refinery is is North Pole-Alaska has the lowest gasoline taxes in the US. Yet our gasoline price is $1.00 per gallon more than in South Carolina.
The gasoline producers should have been investigated long ago, price fixing and un-controlled monopolies are supposed to be regulated by the government to protect the consumer.
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