From Deseret News archives:
Blame game: Just who is the oil-price villain, anyway?
Competition or collusion?
Motorists often complain that gas stations seem to raise and lower prices together as if in collusion. Gas stations insist that no collusion exists, and in fact that price movement is because of fierce competition.
Hill said about 68 gas station chains exist in Utah, and they and independents operate about 900 individual retail locations. "There is a lot of competition on the street with, for example, Maverick, Costco, Smith's and Holiday keeping down the price as low as possible for the consumer."
Senate investigators said prices tend to go up and down together because most stations try to keep prices at a constant cost differential with one or more competitors. Refiners also do the same in competition with each other.
Senate investigators wrote, "Oil companies and station operators typically will survey the retail prices of nearby gasoline stations at least once a day" to come up with a balance that will help prevent losing too much business to lower-priced competitors or being overrun if their own prices are too low.
Scott Reed, an assistant Utah attorney general, said the state has never found any collusion between competitors or antitrust violations, and no pricing irregularities that could not be explained by normal, legal pricing pressures and practices.
He said the state had never researched price gouging because it was not against any law until last year, when the Legislature passed a law (after possible gouging in southern Utah after flooding) prohibiting vendors from raising prices more than 10 percent above the average price during the previous 30 days during declared emergencies.
Also, Utah law bans stations from selling gasoline below cost to attract business for other items or to hurt competitors. That law is designed to prevent large chains from forcing others out of business to reduce competition. Utah law allows a station to sell below cost only to respond to a competitor who is managing to sell for less.
Seasonal hikes
Every Memorial Day and every summer prices rise as more motorists hit the road. Why?
"Our industry, like all industries, is based on supply and demand," Peacock says. "Demand always goes up in the spring. People drive more and are more active. That drives up the cost because supplies are restricted."
Comments
- Notre Dame fires Charlie Weis 7:39 p.m.
- BYU says Hall incident resolved 7:35 p.m.
- Man critically injured in accident 6:47 p.m.
- Trial begins in slaying 6:44 p.m.
- 2 families divided over slaying 6:22 p.m.
- Provo fire displaces 4 families 6:22 p.m.
- Brems outlasts 2nd round of votes 6:06 p.m.
- Boy's quick thinking saves life 6:05 p.m.
- Turner considers County Council run 6:00 p.m.
- Gifts for gamers 5:27 p.m.
- Hall's pain reflects self-betrayal
- Y. student vanished in China
- Max Hall issues apology
- Utes won't respond to Hall
- Hall reprimanded by MWC
- Cougs begin bowl preparations
- Boy shot following traffic stop
- Mitchell called intelligent, controlling
- Matthews passes new Jazz tests
- U. eyes bowl for redemption
- Hall mouths off about hate of Utah
898 - Cougars beat Utes in overtime
481 - Max Hall issues apology
374 - Hall reprimanded by MWC
350 - Hall's pain reflects self-betrayal
305 - Utes won't respond to Hall
239 - BYU is champion of the state
140 - Man trapped in Nutty Putty cave dies
121 - Cave to be sealed with body inside
119 - Religion in politics is tiresome
104
Live 'Twittologue' Dec. 2, 4:00 p.m. with Jason Chaffetz. Click for more.
I wanted to tell them not to go. I dropped subtle hints. "My money is on...
When I was a kid, I worshipped my grandpa. He was undoubtedly my hero....
That's it? No more to say? I'm stunned that a football rivalry, that...
Can't wait to hear how this plays out for the next month to a year. SNORE
The Utah organization and its fans at RES treat our opponents with the utmost...
A Church rule school that tolerates talk like that is not a school I would...
Sure but that was more then 50 years ago, a very different contrast compared...
I'm very disappointed in Max Hall's comments. But he was just reacting to...
@ 6:52, What do you mean, "How do I account for that?" I don't account...
Seriously zoobs, try to analyze things for both sides. Why? you want the...
The board of trustees of BYU ought to do what they did at BYUI (formerly...
GOOD! Because I am sick and tired of hearing all about it!



You can be the first to comment on this story.