California-based refineries since early January have nearly tripled the amount they charge for manufacturing costs and profit. That share jumped from 24 cents per gallon in early January to 66 cents this week. Crude-oil costs rose just 8 cents per gallon. Oil companies denied they're making more money, and said they increased prices because costs had risen. But the state Energy Commission said that, for most of March, oil company data show increased profits.
Gasoline is a free-market commodity.
They're going to price it at whatever the market will bear. Industry analysts say oil companies were able to raise prices because, as crude oil climbed to record highs in March, gas supplies ran short. Demand increased and drivers were willing to pay more. But they couldn't raise the price unless there were an imbalance in supply and demand. The state analyzes the price of gas based on information from oil companies and gas station dealers.