Gas Station Owners Allege Price Fixing

[NoGOPZone]

Source: Associated Press via Yahoo! News

Nearly two dozen gas station owners in California sued Shell Oil Co., Chevron Corp. and Saudi Refining Inc., on Tuesday, claiming the companies conspired to fix prices for 23,000 franchise owners nationwide.

The case filed in U.S. District Court in San Francisco seeks class-action status for the plaintiffs. It is similar to another lawsuit filed in 2004 by other California gas station owners that was thrown out by the U.S. Supreme Court last year. The new group of plaintiffs hopes the court will consider a slightly different argument.



Read more: http://biz.yahoo.com/ap/070822/gas_station_lawsuit.html?.v=4

[Sapere aude]

1. Throw out the case. We all know gas prices are affected by the laws of

supply and demand. :sarcasm:

The oil companies cut off supply and demand more for what they do refine.

[Romulox]

2. Why are producers also allowed to own refineries?

Oil companies constantly argue a lack of refining capacity leads to higher costs. But since the self-same companies own the refineries, they have a financial incentive to not build any new ones. I thought anti-trust laws were meant to address this sort of issue.

[underpants]

3. Welcome to DU-but I am afraid you are wrong

I've never heard anyone from an oil refinerie company say that they need more capacity just like I have never heard any insurance company reps say that tort reform will lower Doctors' premiums. Imply it, sure. Have talking heads state it in an argument? Sort of but not really.

I have heard it too but I rewind the digital TV and realize that that is not what they said at all. The might say that "refineries are running at 96% capacity" but they don't offer an effect. By the way-do machines need "mental health days" or something? Do they need time alone? :eyes:

Anyway Welcome to DU this isn't an attack this is just using your post to make a point. Trust me I made an comment about the "McDonalds coffee lady" (Stella Liebeck) once and got a real education that day let me tell you.


Check this out if you have the time.

http://journals.democraticunderground.com/underpants/45

[Romulox]

4. No, "refinery owners" are monopolist who *profit* from artificial scarcity

So they don't make that argument directly. But the larger oil industry constantly points to lack of refinery capacity.

"Saudi Arabia's Minister of Petroleum and Mineral Resources Ali al-Naimi blamed lack of refining capacity to handle sour and heavy crude for the spiralling global prices. "What the global oil industry confronts today is a challenge of deliverability," said al-Naimi addressing a packed session <...> "This is because there is a major constraint in the refining system. There is a mismatch between the configuration of refineries and availability of sour and heavy crude," he pointed out."

http://www.theoildrum.com/story/2006/1/5/31649/28371

[underpants]

5. Okay right you are

This is a Saudi saying this. They don't like that the American oil companies placed their own valve/spigot in the system. If it were up to the Saudis the oil and refined oil would be flowing in the streets, that way they sell more.

[tom_paine]

6. Unfortrunately, in an un-free nation like Imperial Amerika, Little Nobodies

do not get to successfully challenge their Superiors, and CERTAINLY NOT if those Superiros are Loyal Bushies, as well.

While it is possible that this lawsuit may navigate it's way through the system without encountering a single Loyal Bushie who will kill it, regardless of the legal merit, it is much more likely that it will die a quiet death when it runs into a Loyal Bushie Judge or another official who will do what;s right for The Bushler Party.

Good luck to the plaintiffs. Occasionally, even in a tyrannical nation such as Imperial Amerika, it is possible to find a modicum of justice.