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Florida Attorney General Charlie Crist said his office is working with the state Department of Agriculture and Consumer Services to find out why gasoline prices have spiked so quickly, sharply
and repeatedly after Hurricane Katrina.
``You understand that there is a reduction in supply,'' Crist said. ``Obviously, we're facing a national natural disaster. It's a difficult situation for everyone, but does that justify the
kinds of prices and increases we're seeing in fuel?''
As Crist stepped up his investigation, the governor's office said the escalating gasoline prices are more an issue of supply and demand, repeating Gov. Jeb Bush's plea throughout the week for
Floridians to conserve. Cutting back on driving would help ensure a plentiful supply of gasoline in Florida and save people money, said Russell Schweiss, a Bush spokesman.
``The problem is we have a reduced supply,'' Schweiss said. ``The real solution is for people to conserve.''
State and oil officials have said there is an adequate supply of gasoline in Florida. State officials estimated there was 148 million gallons of gasoline in Florida, and that people use about
23 million gallons a day.
Gasoline supplies in Florida and nationally tightened this week after Katrina cut through the heart of the U.S. oil production region, destroying several oil rigs and platforms and shutting
down and damaging refineries, which turn crude into byproducts such as gasoline.
Two weeks ago, the average price of a gallon of self-serve, regular unleaded gasoline in the Tampa-St. Petersburg-
Clearwater market was $2.29, a record then. On Friday, the average was $2.74 a gallon, said the AAA Daily Fuel Gauge Report. The Internet site Tampagasprices.com reported a high of $3.29 a gallon for the same grade at a Citgo in New Port Richey.
Political leaders in a handful of states, including Georgia, called for reduced taxes to ease the pain at the pump. Schweiss said Gov. Bush has no power to cap prices or reduce gasoline taxes
without the OK of the Legislature. Bush has no plans to call a special session, Schweiss said.
Dave Mica, executive director of the Florida Petroleum Council, said motorists should report unscrupulous dealers. Crist plans to ask gasoline dealers about prices before Bush declared a state
of emergency, current retail prices, their wholesale costs and their distributors.
Suspected price gouging can be reported by calling toll-free hot lines at 1-866-966-7226 or 1-800-435-7352.
Price Gouging
The state of Florida says price gouging occurs when prices are in ""gross disparity'' from what they were before the
declaration of a state of emergency. There is an allowance for the cost of doing business.
- Source: Florida Attorney General Charlie Crist
Reporter Will Rodgers can be reached at (813) 259-7870.