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[Tripon]

Law360, New York (November 14, 2016, 9:42 PM EST) -- A gas station owner asked a California federal judge not to dismiss a proposed class action accusing BP West Coast Products LLC, Chevron USA Inc. and other gasoline refiners of conspiring to rig fuel prices, saying Friday the oil companies failed to offer any legitimate cause for high gasoline prices in the Golden State.

U.S. District Judge M. James Lorenz in July had dismissed without prejudice the lawsuit brought by Persian Gulf Inc., the owner of a 76 brand gas station, that accused major refining companies of jacking up the price of gasoline by restricting supply, causing California drivers to allegedly pay $3.6 billion more at the pump than the U.S. average. The refiners told the court in October that Persian Gulf’s amended complaint still fell short of the mark, but the gas station defended its updated lawsuit on Friday.

“They claim the conspiracy does not make sense — without providing any credible pro-competitive explanation (as they must) for their conduct or explanation for the dislocation of prices in California compared to the rest of the country,” Persian Gulf wrote. “Such arguments fail.”

The suit claims that during price spikes in 2012 and in 2015, Californians were forced to pay $4 and $5 a gallon for fuel, while prices remained moderate in the rest of the nation. The complaint said market responses to unexpected plant shutdowns and fires were inconsistent with how a competitive market would have responded to refineries going off line.

Persian Gulf said Friday that “no explanation” for California’s high gas prices “makes more sense than Defendants agreeing among themselves to restrict the supply of gasoline (or create the illusion of a supply shortage) in order to drive up the price of gasoline on the West Coast.”

https://www.law360.com/competition/...l-to-explain-high-calif-gas-prices-court-told

 

[FantasticMrFoxdie]

i trust the oil companies are not hustling us

 

[otapnam]

I'd love a CA refund check.

 

[Syriel]

The suit claims that during price spikes in 2012 and in 2015, Californians were forced to pay $4 and $5 a gallon for fuel, while prices remained moderate in the rest of the nation. The complaint said market responses to unexpected plant shutdowns and fires were inconsistent with how a competitive market would have responded to refineries going off line.

The rest of the nation doesn't demand a special blend of fuel. CA does.

 

[Tripon]

The rest of the nation doesn't demand a special blend of fuel. CA does.

The blend adds 10-20 cents to the price, not $1-2 above the rest of the nation.

Besides, according to the article, the refiners didn't mention that.