Fixing Gas Prices?

Regarding the excellent, May 1 article by Gene Yasuda on “San Diegans Taking a Hosing on Gas?” (Business):

Several years ago ARCO had a big promotion on what “good guys” they were when they discontinued credit cards and lowered their prices at the pump. At that time, ARCO had fairly uniform pricing throughout Southern California and southern Nevada. Recently, they have chosen to gouge us in San Diego County.

It’s their privilege to raise prices and I have no problem with ARCO per se. What is obvious is that Chevron, Shell and Unocal are in bed with ARCO on this rape of San Diego motorists.

Does it make sense when Chevron’s “pricing product supply specialist,” Frank Suchwala, states that “they (ARCO) are the market leaders, and we follow the competition”? In my business, I rejoiced when the competition raised their prices as it always resulted in increased volume for me. Chevron’s Mr. Suchwala made another pronouncement that dodged the basic issue when he stated “our company’s pricing strategy is not available for discussion.” The bottom line is that I believe that current gas prices in San Diego County are a classic case of “price fixing,” and if the Federal Trade Commission can’t figure it out, they’re not too bright.

JAMES C. CHAFFEE

Carlsbad