California Air Resources Board

Sacramento--  The California Air Resources Board (ARB) will hold an informational hearing at its April 25 meeting on recent increases in gasoline and diesel prices and related fuel-supply issues. The hearing will be part of a previously scheduled Board update on the introduction of cleaner-burning gasoline in California.

        The rise in fuel prices throughout the United States has certainly caused concern among American motorists, ARB Chairman John D. Dunlap said. While California s price increases are due to the same factors that have pushed up prices in other states, we realize that some factors unique to California, such as the use of cleaner-burning gasoline to reduce air pollution, also may make fuel more expensive.

        We are pleased that California s refiners are helping the environment by making the world s cleanest gasoline, but recent price increases, especially those imposed this week, are difficult to understand and justify. Because cleaner-burning fuels are vital to improving California s air quality, we must have a clear explanation for these troubling price spikes, Dunlap said.

        At the hearing, the Board plans to:

• Hear reports from the staffs of the ARB and the California Energy Commission on current and projected future prices, supply and demand of gasoline and diesel fuel in California and the rest of the country.
• Ask individual oil companies to explain the factors contributing to recent dramatic increases in fuel prices, including price increases attributed to cleaner-burning gasoline.
• Determine if actions are necessary to ensure adequate supplies of gasoline and diesel fuel, including consideration of the impact of fuel-formulation variances.

        The informational hearing and update is the first item on the agenda for the Board meeting, which begins at 9:30 a.m. at the Air Resources Board headquarters building, 2020 L Street, Sacramento.