24 States Press for Punishing Oil Companies That Rig Prices

Attorneys general from 24 states met Monday in an effort to pressure the Administration to punish oil companies found to have rigged prices as a result of the Mideast crisis.

The attorneys general, joined by representatives from 12 other states, compared notes on state price-gouging antitrust legislation and the sharp jump in oil prices that occurred after Iraq invaded Kuwait this month and oil from the two countries was embargoed.

North Carolina Atty. Gen. Lacy H. Thornburg urged the federal government to study the entire oil industry to determine why retail gasoline prices have jumped 20 cents to 30 cents a gallon in many parts of the country. The oil industry, he said, “has yet to demonstrate that a single gallon of oil has been denied these shores.”

President Bush last week urged oil companies to hold down costs to consumers, and several companies temporarily complied.

“Our citizens are shocked,” said Florida Atty. Gen. Robert Butterworth. “They believe oil companies are gouging them.”

Butterworth said Florida had subpoenaed 16 major oil companies to determine if price-fixing was occurring. New York is issuing subpoenas to retail service stations charging particularly high prices, and North Carolina has taken Exxon to court on suspicion of retroactive pricing.

The attorneys general met representatives of oil and consumer groups and held discussions with Federal Trade Commission and Justice Department antitrust officials.