SENATOR CALLS FOR PROBE OF OIL FIRMS; STATION OWNERS COMPLAIN OF PRICES.

Byline: Chris Sieroty Staff Writer

NORTH HOLLYWOOD - Describing California consumers and gas station owners as victims, Sen. Barbara Boxer, D-Calif., Wednesday called on the Federal Trade Commission to investigate the state's big oil companies and to meet with local gas station owners who believe those companies are trying to drive them out of business.

At a news conference in front of a North Hollywood gas station, Boxer, surrounded by independent gas station owners, accused Shell and other major oil companies of conducting a

Boxer also accused oil companies of wanting to take over the stations operated by franchisees so they could control prices all the way from the oil fields to the pumps.

For almost two years independent service station operators in California have been punished for fighting for price fairness for their customers,

Because the big oil companies can't fire their franchisees, which would violate their contract, they are using a variety of tactics to increase costs and harass and intimidate their own franchisees, Fred Gorell described Boxer's claim of harassment as totally false: We encourage our dealers to speak their minds on any subject, including gas prices, he said.

There have been many investigations into gas prices and consistently they find it is the marketplace at work for any price increase or decrease, said Gorell.

Spokespeople for Shell and Equilon did not return messages requesting any comment.

According to Fred Dagher, who operates eight Shell stations in the San Gabriel Valley, since the Shell/Texaco merger in 1998 created Equilon, they have made it harder for me to stay in business. Equilon controls the refining and distribution of gasoline for Shell and Texaco in the western United States.

They have taken away our rebate programs, our rent has tripled and they have increased the price that dealers pay for gas, leaving owners in a position where they can't pass on price cuts to the consumer,

Mike Frio, who operates a Chevron station near Los Angeles International Airport, said independent operators

One of the gas stations at the intersection of Camarillo Street, Riverside Drive and Tujunga Avenue, which served as the site for the Boxer news conference, was a Shell station selling unleaded gasoline for $1.35 a gallon.

Souheil Bisharart, who was forced to sell his two Shell stations in Pasadena and Arcadia last year, said if the harassment of independent dealers continues, both the San Gabriel and the San Fernando valleys will continue to lose independent gas stations.

In a letter to FTC Chairman Robert Pitofsky, Boxer said independently owned, branded service stations have long been a mainstay of California's gasoline industry.

. . so you can hear their concerns first-hand.

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2 photos

PHOTO (1 -- 2 -- color) Above, State Sen. Barbara Boxer points to a price chart on the difference between what Californians pay for gasoline and the national average. At left, Shell gas station dealer Fred Dagher speaks out against high gas prices.

David Sprague/Staff Photographer