Writes Professor Brian Thompson in Who’s Really to Blame for High Gasoline Prices?:

One thing is certain: oil companies are not to blame for high gas prices. These companies are responsible for producing the gasoline we need. In California, where gas prices are among the highest in the nation, the oil industry has been repeatedly investigated to find evidence of “price manipulation” (four times in 2003 alone) and none has ever been found.

Although there are other causes of high gas prices, such as high gasoline taxes, the primary cause is environmental regulation. For example, environmental regulation significantly restricts drilling for oil in Alaska and on the continental shelf. More drilling could considerably increase the gasoline supply (up to 20% from greater Alaskan drilling alone) and thus lower prices.

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