U.S. gasoline prices have jumped 2 to 15 cents a gallon at the pump since the Iraqi invasion of oil-rich Kuwait, prompting complaints of price gouging and demands for an investigation.
Price boosts since Thursday's invasion stretched from coast to coast."It's not a very pretty picture at this time," said Al Elkins, executive director of the Oregon Gasoline Dealers Association.
Motorists have accused station owners of jacking up prices unnecessarily and using the Iraqi invasion as an excuse. Station owners blame the big oil companies for what Elkins called "good old-fashioned greed."
"We don't believe the situation warrants any price increase at this time," he said.
Many oil companies sell more gas than they refine during the heavy-driving summer months, so they have to supplement their supplies by buying on the volatile spot market, said John Lord, spokesman for Mobil Oil Co. in New York.
Lord said Sunday that many oil companies are apparently anticipating higher costs from the Iraq-Kuwait war.
Richard Kessel, executive director of the New York Consumer Protection Board and who is investigating the price hike for New York Gov. Mario Cuomo, said there have been reports of increases up to 15 cents a gallon in the area.
"The governor directed us to begin an investigation of whether these increases are justified," he said. "The product that is being purchased now at the pump is product that was refined well before the invasion."
Mark Dyen, president of Fair Share Energy Development Corp. of Boston, said price hikes were the result of oil companies and traders preying on panic.
"It's all smoke," Dyen said. "The price (increase) hits almost as quickly as the news, whereas the oil itself might take almost 30 to 90 days to get here."
Sen. Joseph Lieberman, D-Conn., on Friday urged a federal investigation of the U.S. oil industry.
"There is absolutely no reason consumers should already be paying more for oil and gas," he said.
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S.L. prices remain about $1.10 so far
The prices of unleaded and regular gasoline largely remained at about $1.10 per gallon, although at least one station near downtown Salt Lake City was charging $1.15 early Monday.
Paul Ashton, executive director of the Utah Petroleum Retailers Association, said he'd be surprised if many Utah stations were charging $1.15.
He said there is no reason for escalating gasoline prices but said he believes prices will continue to rise as long as military and political problems appear to be serious in the Mideast.