Gas price hike caused by U.S. greed, says group

By: Drivers.com staff
Date: 2001-07-11

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The Consumer Federation of America says that high gasoline prices are not the result of the Organization of Petroleum Exporting Countries' (OPEC) policies, but stem from growing U.S. refiner and marketer concentration and manipulation. The organization's study, "Ending the Gasoline Price Spiral: Consumer Friendly Policies to Stop the Wild Ride," concludes that a growing industry concentration has allowed refiners and marketers to decrease capacity for refining and storage. The two can then withhold supplies in individual markets. Huge profit increases and consumer pain have been the result. The report shows that between 1994 and 1999, 10 percent of the nation's refineries and branded gasoline stations were closed; 70 refineries have been closed within the past 15 years. In that same time frame, petroleum storage facilities were reduced by 15 percent.

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