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Driving up prices High gas costs in Oregon result from reduced competition Oregon's sky-high gasoline prices are the highest in the nation, higher even than Hawaii's. Gas here is 15 cents higher per gallon than the Western U.S. average, and 21 cents above the national average. A weekend report by The Oregonian concluded that while OPEC moves, refinery fires and the ban on self-serve are often blamed for high prices, the real reason for high Oregon gas prices is lack of competition. Mergers of oil companies and concentrated ownership of supplies and pipelines have conspired against our state. Oregon is served by a handful of Washington state refineries and a single gas pipeline. As oil companies have merged, independents have been squeezed out of business. Oregon has been left with about 1,500 gas stations, reduced by more than a fourth since 1990. The same holds for Jackson County, where 81 stations now pump gas -- down from 106 nine years ago. Meanwhile, merger mania continues. The conglomerate BP Amoco is proceeding with its merger with Arco. Arco shareholders approved the deal overwhelmingly this week. If OK'd by BP shareholders and regulators here and in the U.K., it will be the world's largest oil company. Before the federal authorities sign off, however, we'd like to hear how more mergers and fewer oil companies is supposed to help states like ours -- or Alaska, where Gov. Tony Knowles says the merged company would have "unacceptable monopolistic control" of Alaska resources. The new company also would have dominant control over the pipelines and tankers serving Washington and California, where Oregon gets its gas. We'd also like to hear how this megamerger -- which will mean an estimated 2,000 lost jobs -- will do anything for society except aid the short-term interests of today's shareholders. The Federal Trade Commission was created to prevent abusive monopolies from developing. The FTC is reluctant to undertake investigations into price-fixing and collusion, which are notoriously difficult to prove. But it can refuse up front to approve mergers that contribute to an already troubling anti-competitive trend. The solution to a lack of competition is not continued erosion of competitive markets. As the number of companies dwindle and economic power is increasingly concentrated in the hands of a few gigantic companies, more states and more sectors of the economy will end up like Oregon drivers: hostages to uncompetitive markets. The FTC can stop the merger, or at the least use its leverage to exact concessions from BP Amoco-Arco to pump competition back into the Northwest gas marketplace. Weird weather The theme this week was supposed to be "Back to school," not "Back to umbrellas." The week before the return to school usually means last quick trips to the lake, to the water slide, to the campgrounds, to the movies. This week, however, the quick trip was to the closet to find where we'd put those quilts. Snow fell at Mount Ashland. Temperatures fell everywhere. With lows in the 40s and highs in the 60s and low 70s, this wasn't what we expect from a Southern Oregon August. Overall, though, we can't complain too loudly about an August that has been temperate, if a bit tempestuous with windstorms, rainstorms and high humidity. But the rain gave the grass and the gardens a good soaking, and the cool weather gave us a reprieve from extreme fire danger. Warm weather will be back in time for Labor Day weekend. And fall -- the best of seasons -- is yet to come. Contact your representatives Speak out! Do you have a comment about today's editorial? If so, speak out in our online forums! The Mail Tribune welcomes letters on any topic of general public relevance and interest. Please include a daytime phone number and address for verification. We cannot print letters, even e-mail letters, without verification. We're interested in the comments of all our on-line readers, but we can only publish letters from residents within our Southern Oregon and Northern California circulation area . Sorry, we cannot publish poetry. Writers are limited to one letter every 30 days. Address your letters of 250 word or less (150 words for thank you or election letters) to: Letters to the editor Box 1108 Medford, OR 97501 Fax (541) 776-4376. Or send your letter e-mail to: [email protected] The Mail Tribune offers its opinion pages to stimulate discussion and understanding of issues important to our community. Editorials in this column reflect the opinions of the Mail Tribune. Editorial Board James Grady Singletary , , Publisher Robert L. Hunter , Editor Julie Wurth , Managing Editor John N. Reid , Executive Editor Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA