In trouble: BP sued by Oklahoma
Oklahoma sues BP for price fixing
Oklahoma's Attorney General has sued BP for artificially inflating US gasoline prices by as much as 18 cents a gallon using tactics to manipulate prices of crude oil and gasoline.
BP employees "engaged in the unfair and deceptive practice of manipulating, and of attempting to manipulate, gasoline and crude oil prices in connection with the trading of energy futures on commodity trading markets," according to the suit, filed in a state court 23 June.
Attorney General Drew Edmondson also alleges in the suit that the manipulation took place from 2002 until present, through BP's "acquiring and hoarding short-term supplies of gasoline and crude oil", a Reuters report said.
BP spokesman Scott Dean, said the company does not comment on ongoing lawsuits.
The suit alleges BP instituted a "delivery squeeze" by hoarding gasoline at the New York Harbor hub to drive up prices, through October and November 2002, and again in August 2003.
It also alleges that BP undertook a similar practice in September 2003 at a crucial crude oil pipeline hub in Cushing, Oklahoma, driving up crude oil prices.
"By such control, BP was able to manipulate NYMEX futures trading markets," the lawsuit states.
"Any such manipulation would cause crude oil and gasoline prices to rise and, because Cushing crude oil is a benchmark crude oil, have ripple effects throughout the oil industry."
The Oklahoma AG's office filed a similar lawsuit 29 May against BP, accusing the company of similar practices having driven up the price of liquefied propane gas in February 2004.