Mirroring actions being taken by the White House, California Gov. Arnold Schwarzenegger Monday asked the California Energy Commission (CEC), whose primary role is siting power plants and funding alternative energy programs, to investigate the causes behind the current spike in gasoline prices that has driven regular, self-service supplies above $3/gallon. Schwarzenegger made his request in a letter to CEC Chairman Joseph Desmond.

“:I call on the commission to immediately investigate the prices of gasoline, with particular emphasis on retail motor fuel prices and any significant changes in prices charged by the petroleum industry on gasoline sold in California and the reasons for those changes,” the governor wrote in a letter released by his press office late Monday.

“Additionally, you should investigate these issues as they relate to the wholesale market. Should you find instances of market manipulation, price gouging or unfair business practices, I instruct you to report this to me and turn the evidence over to the California attorney general without hesitation.”

Schwarzenegger told Desmond that what concerned him the most “is there seems to be no relief in sight.” According to the state’s statistics, on April 10 the average statewide retail price for regular gasoline rose for the sixth consecutive week to $2.81/gallon; in the last two weeks it has gone beyond $3.

Noting that economists have attributed the price spikes to the laws of supply and demand, the governor said he could not rule out “the possibility of market manipulation, price gouging or unfair business practices employed by oil companies.” He said citizens were entitled to what he called a “vigilant watchdog over this market and a full-blown analysis,” and he suggested that if the CEC needs new legislation so it can collect all the relevant data it needs, he will work with California lawmakers to get something passed.

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