ILMA Says EXXONMOBIL guilty of Predatory

[MolaKule]

This from Lubes-n-Greases October 2004. Jim Taglia of The Independant Lubricant Manufacturers Association stated this:

quote:

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...In late August, the ILMA announced a campaign to seek federal goverment intervention in what ILMA calls ExxonMobil's "predatory or abusive practices in its finished lubricant sales." ILMA claimed that EXXONMOBIL has raised base prices six times since summer 2003 but has not increased its own finished lubrication prices, squeezing and threatening the survival of independent lubricant manufacturers.

ILMA warned that it would petition the Federal Trade Comission and Justice Department to investigate ExxonMobil's actions, and has assisted members in contacting their elected representatives in Washington, D.C.

ILMA will continue to act to protect independent's interest, says Taglia, whenever anticompetitive behavior threatens....

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[Jay]

I suppose ILMA has a right to Exxon/Mobil's products and should only have to pay what ILMA thinks is fair?

 

[MolaKule]

What I receive from the article (I am not an ILMA member) is that ILMA sees EM's pricing between base stocks and finished products as contradictory behavior.

If ILMA members feel this way, I would recommend they purchase their base oils from ChevronPhillips or a host of other PAO and Ester suppliers.

 

[Jay]

Well, that's the common-sense answer. But when the Justice Department (what an Orwellian name!) gets involved, who knows what can happen?

Companies can be fined for setting prices too high (predatory pricing) or too low (unfair competition).

 

[farfel]

Yeah and companies NEVER do that (points to the Record Company Cartel that artificially inflated CD prices to $15 during the 1990s)


It does seem strange the Exxon is raising the price on base stocks, but not the retail blend. If the price of oil has gone up, then the retail blend should also be more expensive.