FTC Commits to Completing Cantwell-Requested Inquiry into Last Year’s Record Eastern Washington Gas Prices
FTC looking into additional questions posed by Cantwell in October following initial FTC report on price disparity across state
WASHINGTON, DC – In a letter sent this week to U.S. Senator Maria Cantwell (D-WA), the Federal Trade Commission (FTC) committed to completing the second phase of an inquiry looking into the root causes of disproportionately high gasoline and diesel prices that hit eastern Washington during summer and fall 2006.
“The FTC’s initial analysis confirmed just how volatile gas prices can be and highlighted the tremendous discrepancy between prices in different parts of our state last year,” said Cantwell. “Now we need to get to the root causes of local price spikes like the one that hit eastern Washington, and I’m pleased the FTC is willing to work with me to get the answers we need so this doesn’t happen again. With so many local jobs dependent on affordable fuel, we need more transparency and more stable fuel prices."
Cantwell first asked for an FTC investigation on September 15, 2006. On October 19, the FTC responded to Cantwell with its findings that refineries in the Rocky Mountain region were a primary cause of the disproportionately high gasoline and diesel prices in eastern Washington. Unlike the western part of the state, much of eastern Washington receives its fuel from refineries in the Rocky Mountain area.
On October 27, following up on the FTC’s preliminary assessment, Cantwell sent a second letter asking for answers to additional detailed questions to help find the root cause of the Spokane-area price spikes. Cantwell also hopes answers to these questions will help her ongoing efforts to prevent future fuel price spikes nationwide. In a response sent Thursday, the FTC said it was in the process of collecting and analyzing information relevant to Cantwell’s questions “in an effort to respond as completely as possible within a reasonable time frame.”
From August through mid-fall 2006, Spokane-area prices remained significantly higher than those in Seattle—at one point becoming the highest in the 48 contiguous United States. In September, while regular gas in western Washington was available at many locations for less than $2.70 per gallon, Spokane-area drivers paid an average price of $3.04. Spokane-area diesel fuel, important to farmers and other low profit-margin businesses, averaged $3.46 per gallon. According to AAA’s Daily Fuel Gauge Report, prices have since gone down some, with regular gas and diesel in Spokane now selling for an average of $2.51 and $3.12, respectively.
In the new Congress, Cantwell is committed to continuing her efforts to promote energy market transparency and uncovering the factors behind high, volatile energy prices. She is also working to develop a local Washington state biofuels industry to provide clean, affordable, homegrown alternative fuels, and improve the gas mileage of new cars and light trucks, including SUVs.
For more on the FTC’s initial analysis and Cantwell’s work to confront record gas prices, click here.
To view the FTC’s preliminary assessment of the price spikes, click here.
For more on Cantwell’s follow-up letter to the FTC, sent on October 27, click here.
To view the FTC’s most recent letter to Cantwell, sent on January 4, click here.
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