US: Fuel group slams oil giants for anticompetitive market

The Renewable Fuels Association released a report Tuesday that found reason to accuse the nation’s five largest oil companies are using anticompetitive tactics to limit consumer choice in the gasoline industry.

According to reports, the RFA found that gas giants Exxon, BP, ConocoPhillips, Shell and Chevron are using certain business practices to prevent higher ethanol blends of gasoline from reaching gas stations, despite their small market ownership of the pumps.

In its report, the RFA claims, “through rigid franchise and branding agreements, restrictive supply contracts, outlandish labeling requirements, punitive penalties, and other heavy-handed tactics, Big Oil prevents and discourages retail stations from selling fuels with higher renewable content, like E15 and E85.”

The group also said that whether the gas companies actually own the retail gas stations is “irrelevant,” and that their market dominance means they can assert their influence over the industry.

”American consumers will continue to suffer from Big Oil’s monopoly at the pump” unless changes are made, the fuel group said.

While last August lawmakers asked the Department of Justice and Federal Trade Commission to probe the oil industry, little action has been taken into the matter, according to reports.

Full content: Agri-Pulse

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