FTC - Oil Companies Did Not Manipulate Prices After Katrina

Government says no evidence companies withheld supply, but does find instances of localized price gouging.

An investigation by U.S. antitrust authorities found no evidence that oil companies illegally manipulated gasoline prices or constrained oil refining operations, the Federal Trade Commission said Monday.

However, the agency said it had found 15 examples that fit lawmakers' definition of price-gouging at the "refining, wholesale, or retail level." It said factors like regional and local market trends appeared to explain the pricing in nearly all the cases.

So the price went up due to "regional and local market trends". In other words, the price was impacted primarily by increased demand and reduced supply. Sadly, this is a novel concept to some.