U.S. senators press for probe of report that oil companies blocked ethanol

By Ayesha Rascoe WASHINGTON (Reuters) - Two U.S. farm-state Senators on Wednesday urged federal regulators to investigate allegations raised by a biofuel trade group that the oil industry uses "strong arm tactics" to prevent widespread use of higher blends of ethanol in gasoline. A report from the Renewable Fuels Association this week said major oil companies have discouraged the sale of ethanol at levels of 15 percent per gallon (E15) and 85 percent per gallon (E85) at retail stations, by using distribution contracts that make it expensive or nearly impossible for franchises to offer the blends. "This new report underscores the need for the FTC to look into these allegations, and I will continue pushing to ensure that consumers have access to the cheaper, cleaner fuels they deserve," Klobuchar, who chairs the Senate Judiciary Committee's antirust panel, said in a statement. Oil companies, who have long called for repeal of the biofuel mandate, say retailers have been reluctant to sell E15 due to concerns that it could harm engines in older vehicles, and that consumer do not want to buy the product. Read More http://ift.tt/1k6VEPu