Gas wholesalers sue.

Two gasoline wholesalers have filed lawsuits to block government regulations limiting their profits in the U.S. Virgin Islands, officials said, reports AP (Jan. 3, 2005). In separate suits filed in U.S. District Court, Esso Virgin Islands Inc. and Texaco Caribbean Inc. seek to bar the U.S. Caribbean

territory's government from enforcing regulations limiting gasoline wholesalers' profits to US$0.30 profit per gallon sold. It was not clear when court proceedings might begin. The regulations, which also limit gasoline retailers' profits to US$0.35 per gallon, started Dec. 15 as a way to reduce some of the highest gas prices in the Western Hemisphere before added tax, said Andrew Rutnik, the territory's commissioner of Licensing and Consumer Affairs. The price of fuel should be lower, Rutnik said, because the territory's largest island, St. Croix, is home to the Hovensa oil refinery--the second largest in the hemisphere. Esso and Texaco argue industry competition, fuel supply and consumer demand should determine the price of fuel, not government regulations.