WASHINGTON, Sept. 14 (UPI) -- Mergers in the oil and gas industry drove up average U.S. home energy costs $1,000 since 2000, the Consumers Union said Tuesday.
The study, by CU of Washington, D.C., and the Consumer Federation of America, said the Federal Trade Commission, which is responsible for overseeing consolidation in the oil and gas sector, has allowed excessive consolidation and reduced competition during the last two decades. The study cited a recent Government Accountability Office report that found mergers had contributed to the price increases.
The GAO concluded that "oil industry mergers and increased market concentration generally led to higher wholesale gasoline prices."
The report recommends several public policy changes, including a change in the FTC's merger review process to stop further consolidation that would result in decreased competition and higher prices for consumers.
The groups also recommend stock and storage policy be changed so that minor disruptions and reduced storage do not lead to price spikes; the nation's refinery capacity increased to better meet demand and automobile fuel-efficiency standards increased.
