Attorneys general from three states would like to see tighter antitrust laws for petroleum refiners and mandatory increased fuel inventories.

The recommendations were made last week to a Senate Government Affairs subcommittee. The committee released a report last week finding that frequent price increases at the pump are more likely in areas of the country where a few refiners dominate, such as California and the Great Lakes.
According to the Wall Street Journal, Michigan Attorney General Richard Blumenthal suggested Congress pass a law requiring oil companies to demonstrate that consumers would benefit from proposed mergers.
Tom Greene, California senior assistant attorney general, suggested Congress establish a new fuel reserve that cold be tapped when prices start to skyrocket. California, he said, is considering such a reserve for the state.
Four oil industry experts urged the committee to reject such ideas. Preston McAfee, a University of Texas economics professor, noted that price stability could be worse than price volatility if those prices stabilize at a high level.
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