NPRA Again Notes FTC Findings That Vindicate Refiners' Actions; Commission Investigated Post-Katrina Marketplace & Past Refinery Expansion Investment Decisions.

WASHINGTON -- NPRA, the National Petrochemical & Refiners Association, today welcomed release of the Federal Trade Commission's landmark report on its "Investigation of Gasoline Price Manipulation and Post-Katrina Gasoline Price Increases." NPRA President Bob Slaughter commented: "We are still reviewing the full text of the FTC's 222 page report, but the statement issued by FTC this morning confirms our previous statements and written testimony on the subject. This investigation, like so many others conducted at the federal and state level, appears to vindicate the refining industry's actions post-Katrina, as well in the other areas that were the subject of the study."

The Commission found no instances of market manipulation leading to higher prices after Katrina. Assigned a constrictive and arbitrary definition of 'price gouging' by Congress, the Commission did find some examples of industry activities that on the surface seemed to fit the prescribed definition of price gouging. On fuller examination, however, even that handful of examples was explained "in nearly all cases" by regional or local market trends. The Commission went on to repeat its warning that federal price gouging legislation "could cause more problems for consumers than it solves."

The Commission also found that, during the time period examined, there was, "No evidence to suggest that refiners manipulated prices through any means...(F)irms produced as much gasoline as they economically could..."

NPRA would like especially to emphasize the FTC's finding that there is "(N)o evidence to suggest that refinery expansion decisions over the past twenty years resulted from either unilateral or uncoordinated attempts to manipulate prices. Rather, the pace of capacity growth resulted from competitive market forces."

Slaughter concluded: "FTC's report will doubtless be the focus of much discussion in coming days. The Senate Commerce Committee will hear testimony about the report at tomorrow's hearing, at which NPRA will also appear. We appreciate the thoroughness with which FTC conducted this investigation and the wide scope of its inquiry. We hope that Congress and the public will take full notice of its findings. If so, they will conclude that market forces and the operations of the diverse and competitive U.S. refining industry have served the nation well both under normal and difficult economic conditions."

NPRA members include more than 450 companies, including virtually all US refiners and petrochemical manufacturers.