MOTORING PAST THE GAS-PRICE BLUES STATE TO PROBE PRICE-GOUGING AT THE PUMP.

Byline: Harrison Sheppard and Josh Kleinbaum Staff Writers

SACRAMENTO - As the cost of gasoline edged past $3 a gallon, Gov. Arnold Schwarzenegger ordered state officials Monday to investigate whether oil companies are gouging California motorists at the pump.

The governor directed the California Energy Commission to examine whether the industry is manipulating the market and whether it is doing enough to ensure that adequate supplies and refinery capacity are available to satisfy demand.

``The citizens of California deserve a vigilant watchdog over this market and a full-blown analysis to determine to what extent the behavior of big oil companies is driving these record-high prices,'' Schwarzenegger wrote in a letter ordering the probe.

The average price of gasoline hit $3.13 cents per gallon in the Los Angeles/Long Beach area, up 62 cents in the past month, according to the Automobile Club of Southern California. The price is expected to rise through the summer, when demand is typically higher and refiners are required by state law to use a more environmentally friendly formula.

``The peak driving time is in the summer, but the prices always increase prior to the increase in driving,'' said auto club spokesman Jeffrey Spring.

But oil industry officials said there is no price-gouging, simply a convergence of factors at work to drive up the cost of gas.

Among those factors are increased worldwide demand, higher costs for crude oil, a new federal requirement for additional use of ethanol, and some Gulf-area refineries remaining offline in the wake of Hurricane Katrina.

The governor's action follows similar moves at the national level, with congressional leaders calling for an investigation by the Federal Trade Commission and the Justice Department.

But some experts on the nation's energy crisis believe that Schwarzenegger and other officials are becoming distracted by the price-gouging issue.

``The real problem is that we need to develop alternatives to oil, so if they are gouging, people could just buy something else to get around,'' said Tom Mast, author of ``Over the Barrel: A Simple Guide to the Oil Shortage.''

For now, motorists like Kathleen Owsley are struggling to deal with prices over $3 per gallon.

``Holy cow -- $40!'' said Owsley, who paid $3.45 per gallon at a Shell station in Camarillo, Calif. ``This is the most I've ever paid for gas. It's sad.''

Some Angelenos have found ways to avoid the gas crunch, either by taking mass transit or driving fuel-efficient cars. Ridership on MTA trains and buses has increased 11.4 percent during the first quarter of this year, compared with the same time period last year.

Ridership on the Red Line subway between North Hollywood and downtown Los Angeles is up 13.7 percent, and Metrolink has seen a 5 percent spike in riders over the past week.

Still, most Angelenos said mass transit isn't an option because it takes too long to get to their destinations.

``Ride the bus?'' said Manuel, a 57-year-old from Glendale who works in Canoga Park. ``It'll get me there, but it'll take a couple of hours.''

At Northridge Toyota, more customers have asked about the Prius, a hybrid that manufacturers say gets 60 mpg in the city.

The dealership has a 60-person waiting list for the Prius, but gets only 10 to 12 of the cars each month, said Simon Greenberg, Northridge Toyota's general sales manager. The Camry hybrid, to be released May 10, has a 35-person waiting list, he said.

Overall, though, gasoline prices have not influenced car-buying habits, says a study released Monday by Power Information Network, which found that sales of four-, six- and eight-cylinder cars has held steady since last summer.

Even as gas prices continue to rise, some state lawmakers are looking at increasing state taxes on gasoline.

Assemblyman Joe Nation, D-San Rafael, has proposed a bill to increase gas taxes gradually by as much as 25 cents per gallon to fund road improvements. The bill could generate up to $5 billion a year.

Also, an initiative now circulating for signatures to be placed on the November ballot would place a tax ranging from 1.5 percent to 6 percent on oil producers in California.

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CAPTION(S):

2 photos, chart

Photo:

(1 -- color) With the cost of gas escalating, Michael Bernheim has created an electric-powered skateboard that pushes 22 mph and has enough power to climb the steepest of hills - even Coldwater Canyon Avenue in traffic Monday. See Page 3.

Andy Holzman/Staff Photographer

(2 -- color) no caption (traffic)

Chart:

Prices on the rise

SOURCE: losangelesgasprices.com

Gregg Miller/Staff Artist