• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days Does Toyota Know Something That We Don’t?
  • 10 hours America should go after China but it should be done in a wise way.
  • 6 days World could get rid of Putin and Russia but nobody is bold enough
  • 8 days China is using Chinese Names of Cities on their Border with Russia.
  • 9 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 10 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 9 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 8 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 58 mins How Far Have We Really Gotten With Alternative Energy
  • 9 days Putin and Xi Bet on the Global South
  • 9 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 10 days United States LNG Exports Reach Third Place
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Crew Abandons Cargo Ship After Houthi Attack

Crew Abandons Cargo Ship After Houthi Attack

Attacks on Red Sea shipping…

A Signal of Strong Short Term Demand in Oil Markets

A Signal of Strong Short Term Demand in Oil Markets

A significant development this week…

Oil And Gas Once Again In U.S. Government Crosshairs

The U.S. Federal Trade Commission is investigating how it can crack down on oil and gas mergers and whether gas station franchises are artificially sending retail gasoline prices up, according to a letter sent to the White House seen by Bloomberg.

The investigation follows the U.S. Biden Administration’s plea to OPEC to turn on the taps in an effort to rid itself of the stench of high gasoline prices at a delicate economic time for many Americans.

The FTC Chair Lina Khan has directed staff to come up with new legal theories that would give the FTC cause to target gas station deals that it feels are disadvantageous and even to investigate instances of price collusion among gas station chains—specifically targeting national chains that buy up family-owned businesses.

“Over the last few decades, retail fuel station chains have repeatedly proposed illegal mergers, suggesting that the agency’s approach has not deterred firms from proposing anticompetitive transactions in the first place,” Khan said in the letter.

The investigation in part will attempt to determine if major gas station chains force their franchisees to sell gas at inflated prices. Franchisees mostly have no control over prices at the pump.

The reason behind the push is clear: high prices at the pump, which is an unfavorable situation for any new administration. But a series of consolidations in the industry in recent years has also led to a quest to tighten up requirements for mergers.

Gasoline prices have soared since the start of the year and the start of Biden’s term in office. Since then, retail gasoline prices have risen nearly 50 percent.

One of the mechanisms for determining instances of collusion in setting higher gas prices will be to review the divergence between crude oil prices and retail gasoline prices.

ADVERTISEMENT

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News