[DonaldC]

The purpose is probably to keep someone from just dumping on the market below costs just to take out competition.

[Koblenz]

The purpose is probably to keep someone from just dumping on the market below costs just to take out competition.

Just in case some newcomer might come along and take out ExxonMobil and BPAmoco....

[riverdawg]

"The purpose is probably to keep someone from just dumping on the market below costs just to take out competition."

... despite the fact that such a pricing strategy can never be profitable for the "dumping" firm!

[moehoward]

Correct. Some of the ...ahem.... big box supercenters have gotten into similar trouble for selling gas under the going rate to draw customers to stores.