AG questions rising gas prices

Nevada Attorney General Brian Sandoval says his office is keeping a close eye on rising gasoline prices to make sure consumers aren't being gouged.

"The challenge for regulatory and enforcement agencies is to distinguish higher prices influenced by valid market conditions from those induced otherwise," said Sandoval. "We're compelled to prosecute market manipulation or deceptive trade practices, and if we find evidence of that, we will."

The announcement came as gas prices hit their highest price ever, averaging $1.73 per gallon nationwide. Prices for regular unleaded gas in the Carson City area are hovering around the record $2-a-gallon mark.

The Federal Trade Commission's Gas Price Monitoring Project keeps a watch on possible pricing issues in Nevada's two major metropolitan areas -- Reno and Las Vegas -- but doesn't monitor the rest of the state. Sandoval said the attorney general's Bureau of Consumer Protection will keep a watch on the rest of the state.

"We can't just rely on one federal agency to look out for our best interests," he said.

"We work with the FTC, but we don't assume they're going to jump on something that only affects rural Nevada," said Sandoval.

He said he has sent letters to industry authorities requesting information that would justify the recent spikes.

"For all of the scrutiny, it may turn out that the price increases are justified by market conditions, but our impulse is to act, not to assume," Sandoval said.

California officials also are keeping a close watch on gas prices, which have risen dramatically to more than $2 a gallon in the past 60 days.