American Citizens v British Petroleum
Lawyers Target BP Over Inflated Prices
Lawyers plan to seek financial compensation for more than 14 million Americans who paid too much for heating and cooking fuel because British Petroleum (BP) oil company allegedly manipulated the market for propane.
BP is alleged to have made $20 million in illegal profits by cornering the US market for propane gas in early 2003 and 2004, according to a lawsuit filed by the Commodity Futures Trading Commission (CFTC).
The lawsuit seeks repayment of at least the $20 million in allegedly illegal profits plus financial restitution and damages, which could amount to many tens of millions more, according to officials working on the case.
The CFTC lawsuit claims that, because of the market manipulation by traders and executives working for BP's North America, the price of propane was forced up by more than 50 per cent to some 90 cents a gallon in late February 2004. Propane consumption is high in February as many rural homes and businesses not connected to the piped natural gas network rely on the liquefied fuel to provide heat.
The lawsuit seeks to recover the $20 million BP made in illegal profits.
