FOR YOUR INFORMATION.................March 20, 1987



     The Federal Trade Commission staff has urged the Governor of
Georgia to veto a bill that would prohibit petroleum refiners
from owning and operating retail gasoline stations.  In a letter,
the staff said that if the bill becomes law, "Georgia motorists
will have to pay higher prices for gasoline."
     The bill, Senate Bill 177, is allegedly intended to prevent
large petroleum refiners and marketers from using predatory or
monopolistic practices against their franchised dealers.
     However, the FTC staff noted, fears of refiner-owned
stations as part of a scheme of predatory or monopolistic
practices are unfounded.  Major refiner-owned gas stations
constitute only 400 out of 9000 total gas stations in Georgia.
Most refiner-owned stations are owned by smaller refiners such as
Mapco and Crown.  Studies conducted by the Department of Energy
have shown no evidence of predatory activities by refiners
against independent dealers, and the existing antitrust laws are
sufficient to deter any predatory or monopolistic behavior, the
staff said.
     The bill "is anticompetitive and harmful to consumers," the
FTC staff said.  "It is virtually certain that prices would rise
as a result of S. 177's enactment, because refiner-operated
stations tend to be low-cost, high volume, self-service outlets,
stations preferred by many if not most consumers."
     The letter represents the views of the FTC's Bureaus of
Competition, Consumer Protection, and Economics, and does not
necessarily reflect the views of the Commission or any individual
Commissioner.
     Copies of the letter are available from the FTC's Public
Reference Branch, Room 130, 6th St. and Pennsylvania Ave. N.W.,
Washington, D.C. 20580; 202-326-2222; TTY 202-326-2502.

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MEDIA CONTACT:     Susan Ticknor, Office of Public Affairs,
                   202-326-2179

STAFF CONTACT:     Ronald B. Rowe, Bureau of Competition,
                   202-326-2610

(GaGasDiv)