Supervisors probe refiners— role in high local gas prices and consider barring company-owned stations

Summary

At a Rules Committee hearing, Supervisor Tom Ammiano and independent station owners urged legislation to separate refiners from retail stations and restrict zone pricing, citing shrinking competition and large price spreads; industry representatives warned such rules can raise prices and cited CARB and taxes as factors.

Supervisor Tom Ammiano convened a Rules Committee hearing on May 29 to examine whether the City and County of San Francisco should add administrative-code sections (listed in the agenda as 80.1 through 80.1) to require refiners to divest company-owned service stations and to bar discriminatory practices by refiners.

Ammiano framed the issue as urgent for consumers, saying fewer operators produce "a demonstrable lack of competition at the pump" and accusing refiners of "economic redlining" that leaves San Franciscans paying substantially more than the national average. He said the committee would continue to work with the city attorney on possible legislation to foster price competition at the pump.

Dennis Decot, executive director of the California Service Station and Automotive Repair Association, testified that retail franchisees now have little control over pump prices. Decot described "zone pricing" as a mechanism by which refiners set dealers— wholesale costs…

Supervisors probe refiners— role in high local gas prices and consider barring company-owned stations

Summary

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