Supes ask governor, attorney general to investigate Susanville gas prices

It’s a question that’s been asked in Susanville many times over many years — do our local gas stations engage in price fixing because the minimum price of gas at every station in town is exactly the same while gas is cheaper in surrounding and more remote communities.

Several answers have swirled through the Susanville rumor mill over the years — it’s all because of the control one family that operates a single gas station in town has to most recently it’s because all the local stations are owned by members of one ethnic community. Still others have attributed it to what they consider a price-fixing agreement between the city and the Susanville Indian Rancheria to sell gasoline at a slightly lower price (allegedly 3 cents per gallon) than the price paid by Main Street customers. Because it’s considered a sovereign nation, the Rancheria’s tax burden on fuel sales is much lower than those of fuel sellers on Main Street, and the city and the Rancheria allegedly made the deal many years ago in order to allow the Main Street stations to remain competitive.

According to the California ‘department of Tax and Fee Administration state taxes on fuel are at least 67.6 cents per gallon. The federal government adds an additional 18.3 cents per gallon — a total of at least 84.9 cents per gallon.

No one really knows if price-fixing is involved in this situation, but thanks to a request by Lassen County District 1 Supervisor Chris Gallagher, we may finally get a answer from state leaders in Sacramento.

According to a brief letter to California Governor Gavin Newsom and California Attorney General Rob Bonta, the Lassen County Board of Supervisors seeks an investigation to obtain that answer.

According to the letter, “We urge you to investigate whether fueling stations inside the city may be engaging in non-competitive practices to fix prices.”

District 5 Supervisor Jason Ingram, District 2 Supervisor Gary Bridges and District 3 Supervisor Tom Neely all expressed an interest to Chairman Aaron Albaugh in pulling the item for discussion.

Ingram thanked Deputy County Administrator Tony Shaw, whom he expected wrote the letter, for his work.

“This is supervisor Gallagher’s item,” Shaw said. “He’s not available today, so I’m happy to answer any questions.”

“We did a windshield survey on Dec. 2 of all the stations in Susanville, and on the drive to Reno and over to Chester,” Shaw said. “I didn’t include that information the packet. I’ll let the governor and the attorney general do their own investigation.’

“Basically, all the prices in the city of Susanville were the same except for the Chevron and the Indian Rancheria facility,” Shaw said.

“They’ll probably be up here the day after they receive this information,” quipped Bridges.

“Just for information, the attorney general’s website actually provides for citizens to submit complaints directly,” Shaw said.

Click here to file a complaint with the California Attorney General.

Albaugh said gas prices in Adin and Bieber are lower than those in Susanville and prices are lower in Alturas as well.

Ingram added prices are cheaper in Doyle as well.

“I think it coincidental all the prices are the same except for the Chevron and the Susanville Indian Rancheria facility,” Shaw said.

Neely said he’s gotten several complaints, and he’s to be expressing his frustration with local fuel suppliers.

The board unanimously approved the letter.