State Representatives Jim Shapiro (D-Stamford) and William Tong (D-New Canaan, Stamford) led the successful passage in the General Law Committee of legislation they introduced encouraging competition in the state’s motor fuel industry. The legislation, approved in the committee by a unanimous vote, permits the state attorney general to investigate undue concentrations of power that would restrain trade, hurt local businesses and drive up costs to consumers.
The bill gauges the potential for anti-competitive behavior in the fuel industry using a formula applied by federal antitrust investigators, and is supported by the motor fuel distributors and retail gas stations in Connecticut as a way of ensuring a level playing field within the state.
The lawmakers said their proposal gives the state another tool to prevent the fuel industry from anti-competitive activities.
“As oil companies and distributors grow and increase their market share, this proposal assists the state in dealing with the outcome, especially when it pertains to undercutting smaller competitors and hurting consumers,” said Shapiro, who serves as co-chair of the General Law Committee.
Tong said, “Today we dealt another blow to unfair and anti-competitive gas prices. This bill will give our attorney general the tools to fight price fixing and price discrimination in retail gasoline.”
The legislation also prevents price gauging at the pump while providing small businesses with assurances of fair treatment by state regulators.
The bill is House Bill 5220, An Act Concerning Competition In The Motor Fuel Industry.
