EDITORIAL : PAIN AT THE PUMP MARKET FORCES EVENTUALLY WILL BRING DOWN GAS PRICES - BUT FOR NOW, IT'S ROUGH.

THE gasoline business is one of the nation's most competitive industries.

The product is sold at thousands of locations, retailers operate on generally thin margins, and - in response to a variety of factors affecting supply, production and demand - prices at the pump will rise or fall.

As we all know, they've been rising like crazy in recent weeks. California motorists have seen gas prices climb by roughly 30 cents a gallon, or more, since January.

The pinch hurts anyone on a budget, from workers who commute by car to the many small- and medium-sized businesses that need gasoline and diesel fuel for their day-to-day operations.

Sudden spikes in gasoline prices always have a way of bringing out conspiracy theories of the type that were popular during the oil crises of the '70s.

In this case, for example, there has been some discussion about the refineries getting a substantial share of the price hike. In the murky world of gasoline pricing, however, it's hard to know whether this is actually true and, murkier still, why it might be. Last week's hearing of the state Air Resources Board was of limited help.

Californians do deserve to know about such matters, as well as how much of the price increase is attributable to the extra cost of producing new, cleaner-burning gasoline. The Air Resources Board earlier had said that it would cost from five to 15 cents more per gallon to produce, on average.

The low-emission fuel will cut smog and reduce human exposure to cancer-causing substances, which certainly are commendable objectives. But it's important to know whether the board understated the cost, or whether oil companies are using this mandate as an excuse to boost revenues. Again, straight answers are elusive.

Eventually, the uproar will be settled by marketplace forces of supply and demand - and not, thankfully, by the government stepping in and attempting to control prices.

Pump prices do go down as well as up, whether through lower crude oil prices or a reduction in consumer demand because of the higher prices. (Expensive crude oil in the international market is one reason cited for the spiraling gasoline prices.)

And keep in mind that no matter how stunningly high prices now seem, they remain an absolute bargain compared with most other nations.

U.S. prices have stayed within a remarkably stable range during the last two decades. Plus, Americans still pay less tax on each gallon than motorists in other industrialized nations.

While it is quite appropriate for the government to review the factors involved in the current price spike, and perhaps even to identify who's responsibile, frankly the last thing we need is for anyone to use this as an excuse for heavy-handed government interference.