DRISKELL COMMITTEE TO REVIEW GASOLINE PRICING AROUND STATE

POPLAR BLUFF - An interim subcommittee of the Missouri House Commerce Committee will begin investigating allegations that major oil companies are selling gasoline cheaper at company-owned retail stations than they are at wholesale rates to independent dealers.

This situation has often led to complaints from consumers, who find that gasoline is cheaper in metropolitan areas than it is in outstate areas.

Often, gasoline prices are considerably lower in St. Louis than in Cape Girardeau.

State Rep. Joe Driskill, D-Poplar Bluff, is chairman of the commerce committee and will also head the interim panel.

He noted the subject is "very complex" and stressed solutions will not be easy to come by.

"I am not extremely hopeful we can come up with something that works, but we will give it a good try and see if we can get something that works," said Driskill.

Independent station operators have complained that the big companies are trying to drive them out of business.

Driskill said he is fearful the day will come when outstate gasoline prices will be much higher than in cities. The legislator is also concerned about future availability of gasoline in rural areas.

"Let's face it, Exxon is not interested in selling gas to people in Advance," said Driskill. "We definitely need to maintain a network of dealers and jobbers."

Driskill said he wants to avoid the situation where there are no longer independent stations around the state.

"The greatest concern to me is what does it mean to oil consumers in the state, both now and in the future," said Driskill.

During the last session of the General Assembly two bills were introduced that attempted to deal with the problem. But Driskill said both bills were poorly written and not well thought out. The measures would have put in some strict pricing controls on big oil companies.

After the legislative effort was scrapped, Driskill said he promised the independent oil companies he would attempt to come up with a solution through an interim committee.

"We will try to draft legislation that the full committee will consider later, though I'm not altogether certain we will come up with legislation," explained Driskill.

"I'm not sure the oil jobbers will be able to demonstrate collusion on the part of big companies to price gas in their stations cheaper than wholesale; and, if they can show that, I'm not exactly sure what we can do about it."

Driskill stressed the committee has to be careful with what it does to make sure it has the desired effect.

"That is one of the great sensitivities of this committee," he observed. "We certainly want fair pricing practices around the state, but we don't want to put something artificially in place that will raise the price of gasoline to all consumers in the state."

He added, "The greatest worry I have is that if these allegations are true, at some point in the future big oil companies will be providing gasoline in cities with no middle man. And, the middle man that still exists will have to serve such a wide area to make a profit that service declines."

Driskill said the committee will look at what other states have tried, but added, "Apparently they have not done anything successfully elsewhere in the country."

Driskill said the committee will likely have three hearings, two in Jefferson City and one outstate.

Serving with him on the committee will be: Reps. Phil Tate, D-Gallatin; Bill Skaggs, D-Kansas City; Joe Treadway, D-Lemay; Sandy Kauffman, R-Kansas City; and Laurie Donovan, R-Florissant.