Governor Napolitano says gasoline prices are “now being controlled by the market.”

At her weekly news briefing Sept. 2, the governor said continued high gas prices are reflective of the oil shortage in Venezuela and from Iraq, the after effects of the Kinder Morgan pipeline break north of Tucson last month and the level of refinery production in California.

In the meantime, Energy Secretary Spencer Abraham said Sept. 3 the federal government has begun an informal investigation into possible price fixing after the Northeast power outage last month.

“We don’t know when to anticipate they’ll [gas prices] come down,” Ms. Napolitano said. “I do have questions about why prices go up so quickly and come down so slowly.”

Gasoline prices around the state were holding steady, but Arizona continued to have the third highest gas prices in the nation last week, with an average of $1.998 for regular unleaded. The state saw record highs earlier last week when the average price hit $2.008 per gallon, AAA Arizona reported.

“I do think there was some gouging going on during the period of the crisis [two-week gas shortage in Maricopa County last month], so I am supporting a gouging statute so we have some tools in our toolbox to deal with that sort of thing,” the governor said. “How we deal with the suppliers and how they handle their pricing is another matter, and quite frankly I don’t have an answer for that.”

The U.S. Environmental Protection Agency on Sept. 3 ordered the 1,200 gas stations in Maricopa County to resume selling gasoline blended with MTBE, which makes the fuel burn cleaner. The “Phoenix Blend” requirement was temporarily lifted last month to permit the sale of conventional gasoline to ease shortages caused by the Kinder Morgan pipeline break on July 30.

The EPA ordered suppliers to cease delivering conventional gasoline by midnight Sept. 6, and retailers have until Sept. 20 to stop selling it.

Won’t Endorse Candidates Before Primary

Discussing politics, Ms. Napolitano said she will not endorse any Democrat presidential candidates before the Arizona primary in February, but her office has provided information about Arizona issues, such as immigration and forest health, to several candidates who have asked for it in preparation for an Oct. 9 debate here.

The governor said the state also is in the running to host another presidential debate closer to the general election next year.

Former Vermont Governor Howard Dean “has touched a nerve” with people, Ms. Napolitano said, and “He’s got the momentum, no doubt about it.”

Ms. Napolitano predicted the presidential election will be close, and, “This is ultimately going to be an election about the economy.”

Asked whether she might be tapped as a vice presidential running mate for one of the Democrats, Ms. Napolitano said, “I’m not going to speculate on something that hasn’t been offered.” —