US: Oil report gives senators renewed push to fight for reform

A report released this week that accuses the US’s top five gasoline companies of unfairly preventing the sale of certain ethanol mixtures has given senators reason to revamp their fight to have an investigation conducted into the industry.

Senators Amy Klobuchar (D-MN) and Chuck Grassley (R-IA) are calling on the Federal Trade Commission to probe the oil industry after the Renewable Fuels Association released its findings that major oil companies, while not direct owners of retail gas stations, use their dominance to discourage the sale of certain gasoline/ethanol mixtures.

The report found that the companies, including Shell and Exxon, force unfair distribution contracts that place high prices on franchises that wish to distribute certain blends. The RFA says the practice is anticompetitive and limits consumer choice.

The two senators had repeatedly made efforts to have a probe conducted in the industry, reports say. Now, they’re revamping those efforts.

”This new report underscores the need for the FTC to look into these allegations, and I will continue pushing to ensure that consumers have access to the cheaper, cleaner fuels they deserve,” Senator Klobuchar said in a statement. Klobuchar is the head of the Senate judiciary antitrust subcommittee.

Full content: Economic Times of India

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