The Senate Energy Working Group held a Fuel Price Hearing yesterday to hear from industry officials and community leaders ON why fuel prices have been and remain so much higher than other areas.
The working group, led by Senators Joe Thomas, Bill Wielechowski and Lyman Hoffman heard from Fairbanks Economic Development Corporation's president and CEO Jim Dodson who says energy prices have increased in the Interior by as much as 50% since 2007.
Dodson says the economy cannot bear the weight of such prices and he projects if energy solutions aren't revealed, prices could double again.
Senators also heard from Tesoro Alaska Vice President of the Kenai Refinery, James Tangaro, who says given Alaska's remoteness and shrinking infrastructure, costs are considerably higher in refining fuel products for Alaska and some of the product still must be exported for refinement out of state, adding to costs.
Tangaro was quick to illustrate the heaviest costs of operations is the price of oil itself, which is roughly 68% of the total cost.