Federal Trade Commission promises intensified vigilance  
 

WASHINGTON (November 1, 2012) – With consumers reporting huge price increases at gas stations across the east coast in the wake of Hurricane Sandy, Rep. Ed Markey (D-Mass.) today released a letter from the Federal Trade Commission (FTC) responding to concerns about gasoline markets and prices in the Northeast, and called for the FTC to pay close attention to price manipulation. In the FTC's October 25th response, FTC Chairman Jon Leibowitz agreed that gasoline supplies in the region "appear to have tightened" and stated that the FTC has now "intensified our vigilance" in policing the petroleum industry in the region. Gasoline prices in New England exceeded the FTC’s predicted price ranges every day for nearly five weeks.
 
“Fuel supplies in the Northeast were very tight even before Sandy,” said Rep. Markey, the top Democrat on the House Natural Resources Committee. “With two refineries in the region still down from the storm, the opportunity for price gouging and manipulation is further heightened. The Federal Trade Commission needs to be watching this situation very closely to ensure that oil companies and gas station owners are not taking unfair advantage of consumers during a period of emergency.”
 
In the letter, the FTC confirmed that "what we have learned from our investigations over the years suggests that markets are more susceptible to anticompetitive manipulation when market participants have limited supply options at their disposal."
 
The East Coast’s motor gasoline, diesel, and crude oil stocks all remain below their historic 5 year ranges for this time of the year, according to the Energy Information Administration. The two refineries currently down in New Jersey total 308,000 barrels per day of refining capacity.
 
The price of regular gasoline in Massachusetts has fallen 22 cents per gallon in the last month, but at current average prices of $3.71 per gallon, gasoline in Massachusetts remains more than 20 cents per gallon higher than the national average. Average gasoline prices in New Jersey and New York remain above the national average as well at $3.55 and $3.93, respectively. The New Jersey Division of Consumer Affairs has registered about 100 complaints from consumers facing prices that have risen 20 to 30 percent overnight.
  
Rep. Markey’s full letter to the FTC can be found HERE.

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