Ky. AG sues Marathon Petroleum over gas prices
Kentucky Attorney General Jack Conway filed a lawsuit Tuesday in federal court against Marathon Petroleum.
In 2008, Gov. Steve Beshear asked Jack Conway to investigate why gas prices in Louisville are higher than the rest of the state.
Conway announced his findings Tuesday.
He claimed Marathon Petroleum holds a monopoly on fuel supply and was involved in anti-competitive practices to increase gas prices.
Conway said since Marathon merged with Ashland Oil in 1998, it has owned the only refinery in Kentucky.
The lawsuit accuses Marathon of requiring independent retailers to sign unlawful supply agreements.
Marathon also allegedly entered into agreements that kept other suppliers from entering the market.
Conway said deed restrictions are placed on some property sold by Marathon, allowing a gas station on the property to only sell Marathon gas.
In Louisville, Conway said, prices at the pump are 20 to 30 cents higher than anywhere in the state.
"This is not an insignificant case when it comes to monetary damages, but most importantly, I want competition in the wholesale market. I want injunctive relief from these contracts so the people of Kentucky don't get treated poorly at the pump," Conway said.
Conway said last summer, Marathon Petroleum made $40 million more than they were entitled to in Louisville alone.
He also stated that they have witnesses ready to testify against Marathon.
Drivers will almost certainly be paying far less for gas this summer than they have in at least six years.
The energy department said it expects the price of gas to average $2.55 between April and September, the lowest since 2009.