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

Empirical examination of allegations of ''below-cost'' retail selling of gasoline by refiners: Research study No. 038

Technical Report ·
OSTI ID:6669535
It is alleged by some dealers that (major) refiners consistently sell their gasoline through directly operated stations at retail prices below the prices charged to resellers. The results of this examination, involving more than 2000 price comparisons, failed to reveal a single instance where the average monthly retail price at refiner operated stations was below the price charged resellers by refiners. This result obtained not only for all gasoline sales by major refiners, but also for specific grades of gasoline sold by all refiners. Moreover, a large majority of the average monthly price differentials were greater than 6 cents per gallon, and exceeded 10 cents per gallon in a significant number of instances. Thus, the data do not support the allegation of widespread ''below-cost'' selling by refiners through outlets which they own and operate. Therefore, the rationale offered for legislation mandating retail divorcement, or prohibiting ''below-cost'' is not supported by the evidence. 3 figs., 5 tabs.
Research Organization:
American Petroleum Inst., Washington, DC
OSTI ID:
6669535
Report Number(s):
NP-7900652; ON: TI87900652
Country of Publication:
United States
Language:
English