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Schwarzenegger questions high gas prices

California Governor Arnold Schwarzenegger wants state officials to investigate possible price gouging in the gasoline marketplace. KPBS Reporter Erik Anderson has details.

The state's gasoline prices are now averaging more than $3.00 dollars a gallon, and industry officials say prices are still going up. Schwarzenegger is calling on state officials to look into the possibility of market manipulation.

Schwarzenegger: "I've directed our California energy commission to investigate whether there has been any price gouging going on. Many economists say it is simply a supply and demand problem, but we can't ignore the possibility of Enron style rip-offs like the ones that have victimized people before."

The governor also signed an executive order calling for more use of bio-fuels, like ethanol. Public employee union officials say the Governor's concern about consumers is disingenuous, because he's accepted nearly $2 million in contributions from oil companies since 2002.
Erik Anderson KPBS News

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