Arizonans will have to wait until next year for gas-price legislation

PHOENIX - Arizonans are not going to get quick tax relief from high gasoline prices.

The chief legislative proponents of suspending the state's 18-cent-a-gallon levy admitted Wednesday they lack the votes to have lawmakers call themselves into special session this year to debate their plan. And Gov. Janet Napolitano, who can convene the Legislature, has shown little interest in what she said is at best a short term fix that doesn't guarantee retailers would pass along the lower prices.

That means the soonest a measure could be introduced - much less voted on - is January.

Sen. Thayer Verschoor and Rep. Andy Biggs, both Gilbert Republicans, said they instead will focus in the meantime on long-term solutions to high gas prices.

That includes reducing state regulation of refinery construction and trying to get the federal government to let the state's two largest counties scrap requirements to use special fuels to reduce air pollution.

But neither lawmaker supports legislation to give the state Attorney General authority to prosecute wholesalers and retailers who take advantage of emergencies and shortages to sharply hike their own profits. Verschoor said "price gouging" legislation is the equivalent of government-imposed price caps.

And the legislators, who chair the Senate and House Transportation committees respectively, do not back lowering the state's speed limit to decrease the demand for gasoline. Biggs said individuals must decide whether to drive slower to save fuel.

Their concession of lack of support for the tax suspension plan came after a joint hearing Wednesday of their two panels to figure out why gas prices in Arizona spiked after Hurricane Katrina. While the cost of filling up went up nationwide, Arizona's prices rose even sharper than in California even though this state gets most of its fuel from there.

Officials of two petroleum organizations testified lawmakers should look for someone else to blame.

Andrea Martincic, executive director of the Arizona Petroleum Marketers Association, said prices set by her member stations reflect what they have to pay wholesalers for fuel. And Joe Sparano, president of the Western States Petroleum Association, whose members include producers and wholesalers, said their charges reflect the market.

Sparano said prices are set by traders on the New York Mercantile Exchange. He said they are interested only that the price moves so they can make money buying and selling the right to purchase gasoline at a set price on some future date.

Martincic also faulted credit card companies.

She said they charge merchants a percentage of each transaction. So as gasoline prices went up, the card companies got more money for handling each sale.

A spokesman for Visa International said the system is designed so that all merchants share in the cost of operating the processing system.

Rep. Marian McClure, R-Tucson, said there's a way around that: Retailers should offer discounts for cash purchases. But Martincic said that would turn off credit card customers who like the convenience of paying for fuel at the pump - and, given the current gas prices, might not carry around $60 in cash to fill up.