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Adams, NE | Sens. Amy Klobuchar (D-Minn.) and Chuck Grassley (R-Iowa) are urging the Justice Department and the Federal Trade Commission (FTC) to investigate possibly alleged anti-competitive practices by oil companies that may block market access for renewable fuels.
"We have heard allegations that the oil industry is mandating retailers to carry and sell premium gasoline, thereby blocking the use of the current retail infrastructure to sell renewable fuels," explained the lawmakers in a letter sent Tuesday to Attorney General Eric Holder and FTC Chairwoman Edith Ramirez. "Station owners who wish to sell renewable fuel would bear the cost and logistical burden of having to install additional infrastructure to do so.
In one case, an oil company is alleged to be using its franchise agreements to preclude franchisees from offering higher level ethanol blends to their customers. By forcing a franchisee to carry premium gasoline as a condition of carrying regular gas, the oil company may be using its economic power over its franchisee to effect a tying arrangement in violation of the Sherman Act. This conduct may also violate the Gasohol Competition Act of 1980, which prohibits discrimination or unreasonable limits against the sale of gasohol or other synthetic motor fuels," they explained.
"The promise of renewable fuels is rapidly becoming a reality and introducing much needed competition to the transportation fuels sector. Given the implication these alleged activities, if true, could have on competition in the marketplace, we urge you to investigate them and consider whether any action is necessary," the senators concluded.
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Free Market for Fuel...HA!
