District AG Sues Exxon Mobil, D.C. Distributors Over Supply Agreement

Tuesday, Aug 27, 2013  |  Updated 7:23 PM EDT
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District AG Sues Gas Distributors Over Supply Agreement

AP

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In a lawsuit announced Tuesday, D.C.'s attorney general says exclusive supply agreements between Exxon Mobil and its District distributors violate a law allowing gas stations to buy fuel from any supplier.

According to the lawsuit, three distributors provide gas for about 60 percent of the 107 stations in the District -- including 31 Exxon, 19 Shell and 12 Valero stations -- all controlled by the same man. The lawsuit states the supply agreements allow the distributors to set the wholesale prices -- not allowing for competition to keep prices down.

“Under the District’s gasoline marketing law, a retail gasoline dealer is free to purchase a brand of gasoline from any supplier of the brand,” Attorney General Nathan said. “Our suit seeks to end these unlawful supply restrictions, increase wholesale competition, and bring down retail prices at the pump.”

The CEO of the distribution companies has not returned NBC 4's calls.

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