Brooklyn-based family-owned fuel supplier Approved Oil on Wednesday filed a lawsuit against its larger rival Sprague Holdings for allegedly attempting to monopolize New York City's diesel and heating oil market.

Approved Oil said Sprague acquired a deepwater liquid fuel storage terminal in New York City to deprive it and any other potential competitors from having access to the facility.

The company said there are only two large liquid fuel terminals left in the city and Sprague owns both. It said the terminals are critical for distributors to receive fuel by barge or pipeline.

In its suit, which was filed with the U.S. District Court for the Eastern District of New York, Approved Oil alleged that Sprague purchased Buckeye Partners' New York terminal in 2023 to "force [it] out of the market."

Sprague last year said it planned to close the former Buckeye terminal and would not renew Approved Oil's lease when it expires at the end of 2025, Approved Oil said.

"We have tried without success to obtain from Sprague continued access to the Buckeye Terminal. Sprague rebuffed us and instead pursued a strategy to corner one of the most important energy markets in New York City," Approved Oil Chief Executive Vincent Theurer said in a statement.

In its suit, Approved Oil argued that Sprague's actions will reduce competition and raise prices for heating oil and diesel in the city. The company also asked the court for a preliminary injunction to prevent Sprague from closing the terminal or ending its lease.

A Sprague representative did not return a request to comment.

Wednesday's suit comes after Sprague sued New York City in 2023 for allegedly violating its competitive bidding process when it awarded Approved Oil a multi-year contract to supply renewable diesel to the city's 13,000-heavy-duty-vehicle fleet in 2022.

New Hampshire-based Sprague is one of the largest independent energy wholesalers and suppliers in the Northeast. It operates product terminals and natural gas pipelines and it serves more than 20,000 commercial, industrial, utility and wholesale customers.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Frank Tang, ftang@opisnet.com; Editing by Jeff Barber, jbarber@opisnet.com

(END) Dow Jones Newswires

January 16, 2025 13:11 ET (18:11 GMT)

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