WASHINGTON -- Senator Barbara Boxer (D-Calif.), on Tuesday asked the Federal Trade Commission (FTC) to thoroughly review Chevron Corp.'s pending acquisition of 122 gas stations in the state owned by USA Petroleum Corp., said the Associated Press.
Chevron and six other large refiners supply about 90% of retail gasoline in the state, giving those companies a significant effect on retail gas prices in California by virtue of their dominant position in the market, according to Boxer's letter to FTC Chairman Deborah Platt Majoras.
Chevron's [image-nocss] acquisition of USA's assets, including its California retail stations, could further diminish independent unbranded retailers' market position and present potential anticompetitive effects for consumers, including higher retail prices, according to the letter.
Chevron spokesperson Stephanie Price confirmed that the deal is pending FTC approval and said the company is cooperating fully.
An FTC spokesperson said the agency had received Boxer's letter and would respond appropriately.
San Ramon, Calif.-based Chevron, which last week reported a record quarterly profit of $5 billion, announced the USA Petroleum deal in July and said then that it planned to operate the stations, either under the Chevron or Texaco brand. At that time, California had about 10,000 retail gasoline service stations, including about 1,500 branded either Chevron or Texaco.
Representatives from Thousand Oaks, Calif.-based USA Petroleum did not return calls from AP for comment.
Boxer has been long been concerned about the mergers of large oil companies and feared the latest deal could result in even less competition than there already is in California, spokesperson Natalie Ravitz said. The senator also wants to ensure the FTC is doing its job, she added.
Click here to read Boxer's letter.
http://boxer.senate.gov/news/releases/record.cfm?id=265590
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