Refineries blamed for high gas cost

After weeks of paying some of the highest gas prices in the nation, Eastern Washington motorists finally have someone to blame – sort of.

A Federal Trade Commission report released Thursday let gas stations off the hook and pointed a tentative finger at oil refineries serving the Rocky Mountain region. But it gave refineries, many run by big oil companies like ExxonMobil Corp., plenty of wiggle room when it comes to culpability in the whodunit of pricey petroleum.

U.S. Sen. Maria Cantwell, who requested the FTC investigation into why Eastern Washington’s prices are disproportionately high and also pricier than Seattle’s, responded to the report by calling for an audit of some oil refineries, including the use of subpoenas if necessary.

The FTC blamed part of the spike on Rocky Mountain refineries struggling to meet new environmental standards for ultra-low-sulfur diesel. However, the report also suggested that some companies may have chosen to produce diesel instead of gasoline because prices were higher and it was more profitable.

Tupper Hull, spokesman for Western States Petroleum Association, which represents companies that produce, refine and market gas and diesel, said in his organization’s view, the report confirms that oil companies have done nothing wrong.

American corporations spent $8 billion on upgrades to meet government-mandated ULSD requirements, Hull said. Refineries try to balance supply and demand issues in making decisions to produce gasoline or diesel, which is used for farming, trucking and to heat some homes, he added.