What Role Has Collusion Played in High Gasoline Prices?

Not much, if any, according to the Federal Trade Commission, as reported by the Washington Post [registration required].

Gasoline prices are increasing primarily because of market conditions, not collusion or other anti-competitive activities, according to a report released yesterday by the Federal Trade Commission.

The report said a variety of factors have pushed prices higher, including the rising cost of crude oil, increasing domestic and international demand and federal, state and local regulations. The findings included descriptions of investigations into specific price increases and their causes.

The report said a variety of factors have pushed prices higher, including the rising cost of crude oil, increasing domestic and international demand and federal, state and local regulations. The findings included descriptions of investigations into specific price increases and their causes.

The report notes that some observers suspect that mergers, oil company collusion or other anti-competitive conduct may be the reason for higher gasoline prices. But it concludes: "The vast majority of the FTC's investigations have revealed market factors to be the primary drivers of both price increases and price spikes."

Interestingly, those who blame big oil companies for the current high prices for gasoline [see the full article for examples] saw now reason to credit them when gasoline prices were low.

For most of the past two decades, after adjusting for inflation, annual average retail gasoline prices have been lower than at any time since 1919, the report said.

And of course if big oil companies did receive credit for low gasoline prices, it would be blame not credit, accusing them of driving somebody out of business.