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National

Refineries blamed for sluggish drop in Alaska gas prices

Elizabeth Bluemink - Anchorage Daily News

September 11, 2008 06:53 AM

An investigation into why Alaska's gasoline prices are falling more slowly than those in the Lower 48 is showing that refineries — not gas stations — have kept prices high, according to the state attorney leading the investigation.

But the ultimate question of the investigation — why Alaska refineries haven't dropped their prices in step with plunging oil prices — hasn't been answered yet.

In the past two months, the Anchorage average gasoline price declined 4.5 percent. The U.S. average price dropped 11 percent.

"We're going to find the answer," said Ed Sniffen, the state assistant attorney general heading up the investigation, said at a legislative hearing in Fairbanks on Wednesday.

State lawmakers asked Alaska refineries and retailers on Wednesday to explain why Alaska's prices are dropping more slowly.

The public perception is that Alaskans are getting gouged, said Rep. Mike Hawker, R-Anchorage.

Read the complete story at adn.com

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