Gas Prices May Be So High Because of Market Manipulation

Cropped Hand Of Woman Refueling Car

Photo Cred: Getty Images

At the end of April, Governor Gavin Newsom announced that gas prices in California had seen its highest increase ever.

This comes from a report from the California Energy Commission which said that since 2015, gas prices had seen an increase of "between 17 cents and 34 cents per gallon...".

An explanation for this would have been an explosion at a refinery in Torrance. This had slowed down the business and caused an increase in prices for that year.

However, Exxon recovered and are working at a normal rate.

Another explanation is that some gas stations such as 76 and Chevron have been charging more than local gas stations for what is "essentially the same product".

The report from the California Energy Commission said, "While this practice is not necessarily illegal, it may be an effort of a segment of the market to artificially inflate prices to the detriment of California consumers".

Catherine Reheis-Boyd, the Association President of Western States Petroleum discusses how many factors go into the cost of gasoline, but the main one is "the dynamics of supply and demand of crude oil".

Read more about this story at the KTLA website.

Listen to the John and Ken Show segment below!

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