Improvements Needed in the DOE Petroleum Pricing and Allocation Compliance Program

In response to a congressional request, GAO reviewed aspects of the Department of Energy's (DOE) petroleum allocation and pricing compliance program established under the Emergency Petroleum Allocation Act of 1973. In addition, GAO reviewed the proposed compliance budgets for the past 3 years, the DOE basis for resolving major refiners' alleged violations, and the status of prior GAO recommendations to improve the compliance program.

GAO found that the Economic Recovery Administration (ERA) did not initially request sufficient funds in three budgets for audit and investigation work. Although alleged violations have been resolved or tentative settlement agreements have been reached in most cases involving major refiners, the status of five cases has not changed since 1982. GAO found that documentation of alleged violations involving billions of dollars was inadequate in selected cases. In addition, ERA cannot identify the impact of potential overcharges on individual customers or ensure that the final settlements with major refiners include sufficient refunds for all overcharged customers. GAO believes that ERA has not adequately responded to the June 1982 GAO recommendation which required EPA to provide audit coverage of selected major refiners' crude oil sales and purchase activities that were not precluded by a settlement agreement.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: John W. Sprague Team: General Accounting Office: Resources, Community, and Economic Development Division Phone: (202) 512-7783