Schumer demands probe into gasoline prices

Sen. Charles Schumer wants the government to investigate U.S. oil refiners' skyrocketing profits, which he says are to blame for high gas prices.

"Something is rotten," the New York Democrat said Sunday at a gas station on Manhattan's West Side.

He said refiners' profits have more than doubled since last year, as the price of unleaded gas went up by almost 12 percent in just the two weeks ending May 6, topping $4 a gallon in New York.

The senator said he believes refiners may be fixing prices by cutting back on stockpiles -- by keeping refining capacities to only 81 percent and through exports that diminish domestic availability.

Charles Drevna, the president of the National Petrochemical & Refiners Association, which represents many oil refiners, called Schumer's claims "baseless."

"There are basic market fundamentals that are working here," he said, adding the country is "producing more gasoline now" than ever before.

In a letter to the Federal Trade Commission, Schumer demands an investigation into record profits by major refiners.

He did not name any companies, but said a probe should examine all of them, including the biggest five, which are Exxon Mobil, Shell Oil, BP, Chevron and ConocoPhillips. The letter also was signed by Senate Majority Leader Harry Reid.

Memorial Day weekend marks the start of the summer drive season, "and it ruins your vacation when you pull up to the pump and spend $80 to fill your tank," Schumer said Sunday. "It turns your stomach."

He said that historically, refiners' profit margins have been narrow but in the past year, they've shot up.