By accessing/using The Crittenden Automotive Library/CarsAndRacingStuff.com, you signify your agreement with the Terms of Use on our Legal Information page. Our Privacy Policy is also available there.

Commission Approves Filing of Staff Comments on Retail Service Station Acts Divorcement Provisions

Agency: Federal Trade Commission Date: 12 June 2007 [Non-automotive content removed.]

Commission approval of staff comments: The Commission has approved the filing of staff comments with Washington, DC, Councilmember Mary Cheh regarding the “divorcement” provisions of the District’s Retail Service Station Act, which prohibit the operation of retail gasoline services in the District by a “jobber, producer, refiner, or manufacturer of motor fuels.” Councilmember Cheh has introduced a proposal into the Council to allow gasoline jobbers to operate retail service stations, and has requested comments on the likely competitive impacts of the Act’s divorcement provision.

In the comments, staff of the FTC’s Office of Policy Planning, Bureau of Competition, and Bureau of Economics state that given the empirical evidence that bans on vertical integration in gasoline retailing leads to higher retail gasoline prices, the Act’s divorcement provisions likely cause DC residents to pay more for gasoline than they otherwise would. Accordingly, the staff letter supports Councilmember Cheh’s proposal, while noting that eliminating the divorcement provisions entirely would provide consumers with more benefits than a partial repeal.

The Commission vote approving issuance of the staff comments was 5-0. A copy of the comments can be found on the FTC’s Web site as a link to this press release. (FTC File No. V070011; the staff contact is James Cooper, Office of Policy Planning, 202-326-3367.)

MEDIA CONTACT:

Office of Public Affairs
202-326-2180