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Mergers, Manipulation and Mirages: How Oil Companies Keep Gasoline Prices High, and Why the Energy Bill Doesn’t Help

4/13/2004

 
The United States has allowed multiple large, vertically integrated oil companies to merge over the last five years, placing control of the market in too few hands. The result: uncompetitive domestic gasoline markets. Large oil companies can more easily control domestic gasoline prices by exploiting their ever-greater market share, keeping prices artificially high long enough to rake in easy profits but not so long that consumers reduce their dependence on oil (after all, if prices went up too high for too long, then we’d seek alternatives to oil).
oilmergers.pdf
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  • Curio
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