"Two U.S. farm-state Senators on Wednesday urged federal regulators to investigate allegations raised by a biofuel trade group that the oil industry uses "strong arm tactics" to prevent widespread use of higher blends of ethanol in gasoline.

A report from the Renewable Fuels Association this week said major oil companies have discouraged the sale of ethanol at levels of 15 percent per gallon (E15) and 85 percent per gallon (E85) at retail stations, by using distribution contracts that make it expensive or nearly impossible for franchises to offer the blends. (RFA report: bit.ly/1mIvQi9)

Senators Amy Klobuchar, a Democrat from Minnesota, and Chuck Grassley, a Republican from Iowa, said on Wednesday that the report bolstered the case for the Federal Trade Commission to evaluate whether the oil industry has engaged in anti-competitive practices."

Ayesha Rascoe reports for Reuters July 10, 2014. [2]