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U.S. Department of Energy
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State of competition in gasoline marketing. Book I. A study of refiner subsidization. Book II. An analysis of the subpoenaed documents (as required by Title III of the Petroleum Marketing Practices Act). Final report

Technical Report ·
OSTI ID:6629797
The Petroleum Marketing Practices Act was enacted in June 1978. One part of that Act, Title III, required the Department of Energy to study the role of vertically integrated petroleum companies in the marketing of gasoline. Specifically, the study was to focus on the pricing practices of these companies at their salaried retail outlets. A preliminary, limited analysis of nationwide market share trends was forwarded to Congress in December 1979 finding no evidence of pedatory practices. Part I of the Title III Study was transmitted to Congress in April 1980. The Part I analysis tentatively found no evidence of predatory subsidization or allocation subsidization by refiners at their company-operated retail gasoline outlets. These tentative conclusions were debated by industry groups and legislative spokesmen both favoring and opposing the dissolution of major petroleum companies at various Congressional hearings concerning legislation prohibiting refiner operations at retail. This Final Report supersedes the analysis conducted in Part I since it includes all the data used in Part I as well as additional data. The Final Report is divided into two parts. Book I examines several alleged predatory practices of refiner marketers in light of recent developments in gasoline marketing. Its basic thrust is to explore fully the hypothesis that refiners are engaged in a predatory campaign to eliminate their independent competitors, ultimately monopolizing gasoline marketing. Book II focuses on the internal financial and planning documents of nine integrated petroleum companies subpoenaed during the course of the study. This volume specifically examines the marketing strategies adopted by these companies over the last decade, i.e., if investments in gasoline marketing were made for predatory or pecuniary reasons. A brief overview of each book follows.
Research Organization:
Department of Energy, Washington, DC (USA). Assistant Secretary for Policy and Evaluation
OSTI ID:
6629797
Report Number(s):
DOE/PE-0026
Country of Publication:
United States
Language:
English