UCAN: Blame Price Gouging, Not Egypt

Gas prices are on the rise for regular and diesel

When it comes to the price at the pump, Charles Langley says blame opportunistic gouging, not Egypt.

The oil industry critic with the consumer group UCAN says claims of oil shortages caused by Egyptian difficulties is "a fiction wrapped in a fairy tale." 

"The problem is market gaming, not supply and demand," said Langley. 

Since Monday wholesale gas and diesel prices have surged an average of a nickel, even higher for independent gas stations. 

Crude futures have been driven up by concerns that the protests in Egypt could threaten exports from the Middle East.  But the International Energy Agency states that there is no real threat to crude exports from Egypt. 

Only 2.5 percent of the world's oil supplies move through Egypt through the Suez Canal

The U.S. Energy Information Agency reports strong inventories of stored oil.

Langley says he believes that California refineries are exploiting oil fears and peddling tales to their dealers who will accept massive price spikes blamed on Egyptian unrest.

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