The Council on Wage and Price Stability yesterday formally listed Amerada Hess Corp.'s refining and marketing division and the cement division of Ideal Basis Industries as being out of compliance with the administration's price standards.
Amerada Hess, the nation's 18th largest oil company with revenues of $4.7 billion last year, agreed that it is out of compliance, COWPS said, "without proposing means to correct price boosts beyond the standards."
An Amerada Hess spokesman was not available for comment.
Ideal Basic earlier disputed a council finding that it was not in compliance with the standard covering price increases over a six-month period and asked reconsideration of the finding.
COWPS declined to reconsider, saying that Ideal Basic wanted to average its prices over the six-month period whereas the standard requires that the comparison be made on a quarterly basis. The Ideal Basic approach would mean that significantly higher price increases would still be in compliance, it said.
John A. Love, president of the company, which had sales of $410 million last year, said that he was "extremely disappointed" at the decision and that the company was reviewing what action it might now take, if any.
R. K. Stafford, senior vice president of Amerada Hess, argued in a letter to COWPS on May 25 that the price and profit margin standards, as written, should not apply to his company.
Stafford said that as a result of oil price controls in the U.S. during the entire 1975-77 base period, Amerada Hess's profits had been sharply depressed. Now, he wrote, "For the first time in many years, the company is receiving a reasonable return on its refining and marketing investment.
"The company has given considerable thought to possible solutions to the dilemma in which we find ourselves," the letter continued.
We are vitally concerned with inflation. But we are also conscious of other great problems facing our country, particularly the implementation of a national energy policy which is directed toward freeing the petroleum industry from economic restraints which have inhibited production and the expansion of refining capacity.
"We urge the council to consult with the petroleum industry and devise appropriate voluntary standards," the letter concluded.