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U.S. Department of Energy
Office of Scientific and Technical Information

State of competition in gasoline marketing. The effects of refiner operation at retail (a study required by Title III of the Petroleum Marketing Practices Act)

Technical Report ·
OSTI ID:5432449
Title III of the Petroleum Marketing Practices Act requires the Secretary of Energy to report to the Congress on the extent to which producers, refiners, and other suppliers of motor fuel subsidize the sale of such fuel at retail or wholesale with profits obtained from other operations. This is Part I of the report required under that Title. It addresses a number of questions relating to the central issue - the state of competition in the gasoline marketing industry. Part II of the report, to be issued this fall, will discuss the subpoenaed documents of nine integrated companies, and will contain recommendations for action, if deemed necessary. The basic thrust of Part I is an examination of three issues: (1) Are integrated refiners subsidizing their company operated gasoline retail outlets; (2) Are integrated refiners moving gasoline away from their branded dealer network into their own retail outlets; and (3) Are integrated refiners manipulating the allocation system in favor of their own retail outlets to the detriment of other gasoline marketers. At a series of regional hearings, independent marketers charged that integrated refiners were engaging in each of these practices. In essence, integrated refiners were portrayed as using unfair or illegal competitive practices which would ultimately lead to their domination of retail gasoline markets. This report addresses each allegation, after providing a historical and theoretical framework for today's debate.
Research Organization:
Department of Energy, Washington, DC (USA). Assistant Secretary for Policy and Evaluation
OSTI ID:
5432449
Report Number(s):
DOE/PE-0019(Vol.1)
Country of Publication:
United States
Language:
English