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FTC says Blue Rhino, AmeriGas colluded on propane tanks

  • The FTC accuses two key propane suppliers, Blue Rhino (FGP) and AmeriGas (APU, UGI), of illegally colluding in 2008 by reducing the amount of propane in tanks from 17 pounds to 15 pounds without cutting the price, in administrative complaint filed against the companies.
  • Blue Rhino and AmeriGas together controlled ~80% of the market for wholesale propane exchange tanks in the U.S., according to the FTC.
Comments (8)
  • TGC004
    , contributor
    Comments (447) | Send Message
     
    I always wondered why the tanks that I got filled locally always lasted longer than the ones I got thru Blue Rhino, makes perfect sense.
    27 Mar 2014, 05:53 PM Reply Like
  • WmHilger1
    , contributor
    Comments (1307) | Send Message
     
    Heck, the grocery business has been doing that for decades. When was the last time that you got a full 16 ounces or 12 ounces of anything for the same price as they are now getting for something like 14.5 ounces or 10.25 ounces, and usually in the same size can or bag. The prices may have stayed the same, but the contents have been reduced.

     

    Also the hardware stores. A 2X4 now measures about 1.25" by 3.0". And how about 6 penny nails that are now about the same length as 4 or 5 penny nails used to be, but sell for the same price as they were when they were longer.
    27 Mar 2014, 06:23 PM Reply Like
  • TGC004
    , contributor
    Comments (447) | Send Message
     
    Here is a statement issued by Ferrell Gas - the Barry administration are a bunch of incompetent w h ores

     

    OVERLAND PARK, Kan., March 27, 2014 /PRNewswire/ -- Ferrellgas Partners, L.P. (NYSE: FGP), one of the nation's largest distributors of propane, issued today the following statement.

     

    Ferrellgas Partners, L.P. ("Ferrellgas") is pleased to announce that, after a lengthy and thorough investigation, the Federal Trade Commission has concluded that the company's decision in 2008 to reduce the fill level in its Blue Rhino propane tanks from 17 pounds to 15 pounds was not the result of collusion.

     

    However, the company is disappointed by the Commission's decision to file an administrative complaint against Ferrellgas for allegedly agreeing with AmeriGas Partners, L.P. to require Wal-Mart to accept 15 pound tanks. These claims are without merit and we will vigorously contest them.

     

    Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., serves customers in all 50 states, the District of Columbia and Puerto Rico. Ferrellgas employees indirectly own more than 21 million common units of the partnership through an employee stock ownership plan. More information about the partnership can be found online at http://bit.ly/1l8BBCl.

     

    Contacts:

     

    Tom Colvin, Investor Relations, tomcolvin@ferrellgas.com or (913) 661-1530

     

    Scott Brockelmeyer, Media Relations, scottbrockelmeyer@ferr... or (913) 661-1830

     

    SOURCE Ferrellgas Partners, L.P.

     

    /Web site: http://bit.ly/1l8BBCl

     

    (END) Dow Jones Newswires

     

    March 27, 2014 17:15 ET (21:15 GMT)

     

    27 Mar 2014, 07:41 PM Reply Like
  • seterk
    , contributor
    Comments (240) | Send Message
     
    Is UGI itself being prosecuted? When did they acquire Amerigas? Thanks.
    27 Mar 2014, 10:08 PM Reply Like
  • thefuture007
    , contributor
    Comments (33) | Send Message
     
    Sad when the Government doesn't Allow a Company to decide what's BEST for the Company,Collusion.? People Donot have to BUY it,as long as it wasn't marketed as 17 pounds and only Selling 15,Collusion,to what Make a Profit vs the Over Regulating being done.Not sure of the FACTS on how they were labeled, marketed etc.But FTC, typical government intervention to show they have a need for themselves,4 years ago this happened and now the charges,whew that's fast,Inept more like it.Create a crisis/problem to justify a job.Sad there's more prosecution over a Business Earning what it can charge on a product,thats called CAPITALISM.!! Price gouge at the PUMPS.etc... Really?? Show me where in the Constitution it says you have a Right to GAS,Food, OIL,Clothing,Healthcare, etc.,Housing at some " Government mandated " Affordable cost/Price.Typical of How Socialists think and believe.Have a nice day.
    28 Mar 2014, 01:02 AM Reply Like
  • GonzoOne
    , contributor
    Comments (155) | Send Message
     
    Take your tank to a local propane dealer (often a gas station) and watch while they pump. Pay for an accurately counted amount. Discloser: I own a lot of FGP.
    28 Mar 2014, 05:32 AM Reply Like
  • golfergene
    , contributor
    Comments (4) | Send Message
     
    Lock 'em up and toss the key in the Indian Ocean
    28 Mar 2014, 07:43 AM Reply Like
  • WmHilger1
    , contributor
    Comments (1307) | Send Message
     
    GG - Obviously you are one of the people affected by this situation. What would you have FGP do; sell you propane at a loss???

     

    Your contract with FGP probably contains a statement or two covering this type of situation. Have you ever read it? Can you even find it? The world turns and SH*T happens. Don't complain when something happens for which you were not prepared!!!
    29 Mar 2014, 10:13 AM Reply Like
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