PRESS RELEASES

For Immediate Release

Contact:
Jeff Wilson
818 543-5344

Dave Fogarty
650 814-0562

Anita Mangels
949-499-6995 Voice
714-269-0531 Cell

Petroleum Industry Responds to Energy Commission Report
On Gasoline and Diesel Prices

Torrance, April 1, 2003 -- The Western States Petroleum Association today released the following statement from its President Joe Sparano in response to the California Energy Commission’s newly-released report on the causes of increases in gasoline and diesel fuel prices.

“WSPA is pleased that the CEC’s report generally confirms what other government agencies have already concluded: recent price volatility in gasoline and diesel fuels is attributable primarily to the unusually high cost of crude oil on the world market, which nearly doubled in the past year. The CEC also noted other widely reported market, supply and demand conditions as contributing factors. Significantly, the CEC has concluded that an investigation by the Attorney General is not warranted at this time.

“WSPA and its member companies are sensitive to Californians’ concerns about the recent volatility in gasoline prices, and will continue our efforts to maintain a healthy public dialogue addressing those concerns.”

The CEC conducted its examination at the request of Governor Gray Davis. It is the latest of some 25 state and federal investigations conducted over the last several decades, all of which found no evidence of anti-competitive or illegal activities on the part of the petroleum industry. Most recently, the U.S. Energy Information Administration reported on March 12 that, in its opinion, consumers were not being “gouged” at the pump.

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