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Friday, July 25, 2008
Ask AP: Candidates' salaries, Alaska's pricey gas
By The Associated Press
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An awful lot of the oil produced in the United States comes from the nation's northernmost state. So why are gas prices at Alaska's filling stations among the highest in the country?

That's one of three questions in this edition of "Ask AP," a weekly Q&A column where AP journalists respond to readers' questions about the news.

If you have your own news-related question that you'd like to see answered by an AP reporter or editor, send it to newsquestions@ap.org, with "Ask AP" in the subject line. And please include your full name and hometown so they can be published with your question.

___

Are sitting senators _ i.e. John McCain, Barack Obama, Hillary Clinton _ paid their full salaries when they are campaigning for office and spending so little time on their senatorial duties?

Brenda Esslinger

Springfield, Ill.

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No senator has ever given back any of his, or her, Senate salary _ currently $169,300 a year _ while running for president, according to Senate historian Donal Ritchie. He said senators still run their offices and carry out many of their duties to constituents even when they are off on the presidential campaign trail.

The 1996 Republican nominee took a different approach. Former Sen. Bob Dole, R-Kan., resigned as majority leader and gave up his Senate seat when he ran against Bill Clinton. Dole said he couldn't carry out the daily responsibilities of running the Senate and campaign effectively at the same time.

In the early days of the nation, members of Congress were paid by the day. After it was found that they stayed in session longer in order to paid more, their compensation was changed to an annual salary.

Jim Abrams

Associated Press Writer

Washington

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Given the large amount of oil drilled in Alaska, why is the price of gas at the pump in Anchorage so much higher than the national average?

Steve Nelson

Anchorage, Alaska

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According to Matthew Berman, an economist at the University of Alaska Anchorage, Anchorage's higher-than-average gas prices ($4.39 for regular unleaded at most stations in July) can be traced to a variety of factors, including the small size of the two refineries that supply nearly all of Alaska's gas stations and the high cost of shipping goods to the state.

Flint Hills outside Fairbanks and Tesoro in Nikiski refine crude oil, most of it from Alaska's North Slope and Cook Inlet, into gasoline and other products. Both are relatively small, meaning operating costs are higher in relation to output than at larger refineries in the lower 48.

Berman says the lack of competition allows the two refineries to charge gas stations at the rate it might cost to import gasoline. So, prices in Anchorage are above average because they correspond with the generally high cost of shipping goods to Alaska, even though the gas, for the most part, is not actually being brought in from outside.

Jeannette J. Lee Continued...

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