Gov. Linda Lingle yesterday said she will join other states in asking the Federal Trade Commission to investigate increasing gasoline prices in the wake of hurricanes that ravaged the Gulf of Mexico.

Lingle's announcement comes after a key Democratic lawmaker last week urged the governor to support an FTC probe into allegations of gasoline price gouging. Eight Democratic governors have urged the White House and Congress to investigate whether oil companies illegally manipulated prices following hurricane Katrina.

The FTC told Congress this month that it already has launched such a probe. The FTC also said it promotes competition via antitrust law enforcement and monitoring of retail and wholesale gasoline and diesel prices.

"The Federal Trade Commission proposals are in alignment with what I have been advocating for Hawai'i," Lingle wrote to House Majority Leader Marcus Oshiro, D-39th (Wahiawa). "As such I have asked Hawai'i's Attorney General to join other attorneys general in sending a letter to the FTC asking that it investigate possible unlawful conduct that could be affecting the cost of fuel."

Oshiro wrote Lingle last week calling on her to support the FTC investigation and ask that FTC Commissioner Deborah Majoras recuse herself from the investigation because of a prior association with Chevron.

"That casts a shadow of doubt over the investigation," Oshiro said yesterday. "I think it's worthy of a national investigation and it should tie in to what's going on in Hawai'i."

Gasoline prices nationwide spiked following hurricane Katrina, which damaged Gulf Coast refining and distribution operations. Hawai'i's price cap law that took effect Sept. 1 sets a ceiling on what local wholesalers can charge based on prices in Los Angeles, New York and the Gulf Coast.

Following hurricane Katrina Hawai'i wholesale prices have hovered near that cap amount, even though Katrina had no impact on the state's oil industry operations or the Hawai'i's traditional sources for crude oil and gasoline.

Tesoro Petroleum Corp. yesterday did not respond to questions about the FTC probe. Albert Chee, a spokesman for Hawai'i's only other refiner — Chevron Corp. — said the company continues to comply with the law.

"Should the FTC look into the Hawai'i situation, I believe they'll find Chevron in full compliance with the gas cap law," he said.

Reach Sean Hao at shao@honoluluadvertiser.com.