Big Oil says not to blame for rising pump prices

NEW YORK Feb 19 (Reuters) - The American Petroleum Institute -- the country's main lobbying group for the U.S. oil industry -- defended U.S. energy companies on Thursday against criticism that lower refining activity is pushing gasoline prices higher for recession-wary drivers.

"We've heard people say, 'Oh, the refiners are trying to manipulate the prices,' but it just isn't true," API Chief Economist John Felmy told reporters on a conference call.

API figures show that U.S. refiners made a record amount of gasoline in January, and U.S. gasoline imports also rose in the month, even after government data showed demand for gasoline fell in 2008 for the first time since 1991.

Average U.S. retail gasoline prices have risen to $1.95 a gallon, up from $1.84 a month ago, according to automobile and travel group AAA, as refining companies like Valero Energy Corp (VLO.N) and ConocoPhillips (COP.N) announced production cuts to fend off weak profit margins.

A government report released on Thursday showed U.S. refiners utilized 82.3 percent of total capacity last week, down 1.2 percentage points from the same week a year ago. [EIA/S].

"With refiners cutting back as much as possible to avoid losses, pressure is on inventories to supply the additional barrel of gasoline," Boston-based Energy Security Analysis Inc said in a research note Thursday. "As these supplies diminish, the wholesale price of gasoline will spike, leading to higher prices at the pump."

Pump prices are still a far cry from levels over $4.00 a gallon in mid-2008, when U.S. crude prices set a record above $147 a barrel, but advocacy groups like the Consumer Federation of America have said rising gasoline prices could slow any economic recovery by further hurting cash-strapped consumers. (Reporting by Joshua Schneyer; Editing by Christian Wiessner)