TO: OC Register On-Line Editorial April 11, 2000

FROM: Will L. Woods, CAE

Automotive Trade Organizations of California

3002 Dow Avenue, Suite 308

Tustin, CA 92780

(714) 734.1801

The suggestion that the state rescind gas taxes throughout the summer will only temporarily reduce costs to consumers, and will punish the wrong people -- those same consumers. The state and local municipalities will invoke other methods to replace those funds, at our expense. And you're not affecting the ones that are the culprits--the oil companies! The oil companies will, no doubt, announce record profits again -- at the expense of the consumer and the small independent gas station owner.

At the most recent meeting of the California Attorney General's Gas Pricing Task Force, attendees heard from independent industry representatives that (contrary to claims by the oil companies) there is plenty of affordable California grade gasoline ready to be shipped to California, but the major oil companies control all distribution terminals and won’t let them in!

AuTO California, an independent service station dealer’s association, has submitted draft legislation to the task force that will reduce the costs of gasoline in California by increasing competition for wholesale gasoline. There is no competition now!

If there were competitive forces at work, do you think they could get away with raising gas prices even though there is plenty of gas available?

WAKE UP CALIFORNIA!

Let's stop beating around the bush and attack the problem at the source!

Enact legislation that will create competition in the marketplace by allowing independent dealers to shop for wholesale gasoline at the most competitive price!

Create a truly free market—oil companies, dealers and most of all consumers will benefit!