It is believed that the probe first in industry-oriented nation for ongoing fight of high pump prices and some Democrats question whether oil companies are taking advantage of consumers.
As CNN has learned, the New York investigation covers the entire supply chain in the state, from manufacturing to the pump.
The probe will focus not only on major oil companies supplying oil to the state, but refineries processing crude oil into gasoline, as well as independent operators of pipelines and terminals, the source said.
New York price strict law gives the authorities wide power explore entire supply chains, covering all participants, including manufacturers, retailers, distributors and shipping firms.
Is not clear what evidence, if any, does the government have of potential price gouge.
“Rising gas prices are forcing working New Yorkers and low-income families to decisions on whether to pay bills or put food on at the table,” said James. in statement to CNN. “Price gouging is unfair and illegal and I office determined to do sure it doesn’t happen in our state.”
Rockets and feathers
Gas station prices depend on oil market.
Oil prices jumped over in past two years for diversity of reasons, including strong demand as Covid subsides and slow return of US and OPEC offer stopped from the start of pandemic. War in Ukraine caused a sharp rise in oil prices last month before highest level since 2008, which led to higher gas prices record maximums.
Biden called out trend for gas prices go up like rocket at oil surges, but only drop like pen when rough crash. The White House drew attention to a longstanding trend known as rockets and feathers, which critics claim to be detrimental to consumers, not pass savings along with drivers.
Focus of investigation at this stage on understanding price-installation further up supply chain and not necessarily at the retail level, a person familiar with It is reported by CNN.
tom kloza, global head of energy analysis at the Oil Price Information Service, reviewed price data from more more than 5000 filling stations in New York and said that the aggregate data at the moment is year “not show nothing unusual”.
“There are always a few bad seeds who have high prices in thin little communities where convenience is paramount,” Kloza said. in email. “In this way, AG can find a few stations, but the vast majority of operators unlikely to fall under any vague definition of “gouging” is chosen by politicians.
Kloza added“For me, robbery is rampant in Yankee Stadium. How much do they earn on hot dog and bottle of water?”
New York AG asked public for receipts and photos
After Biden banned US imports of Russian oil last month, New York Attorney general warned oil companies and gas stations that price hit illegally.
American Petroleum Institute, trade group which represents the oil and gas industry, said in CNN’s claim that gas station prices are a function of increased demand backlog in supplies, “geopolitical upheavals and policy uncertainty from Washington.
“It’s an industry of price accepting, not price creators and countless investigations around history showed that changes in gasoline prices are based on market factors,” said API spokeswoman Bethany Williams.
“Rip the American people off”
critics of oilmen often note the huge profits that companies receive in and huge sums of money squander on shareholders in the form of dividends and redemption.
However, this worth noting that oil companies have lost huge sums of money in 2020 when oil crashed below zero for in first time ever. Dozens of oil companies went bankrupt during the economic downturn.
Still, officials in some states have recently called for an investigation into potential price gouge.
In early March, Secretary of Massachusetts of Commonwealth Bill Galvin named for investigation into whether oil and gas companies are price gouge.
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