FAS Russia initiated cases against “TNK-BP” Holding” OJSC and “Bashneft” ANK” OJSC
On 7th October 2011, the Federal Antimonopoly Service (FAS Russia) initiated cases against oil companies - “TNK-BP” Holding” OJSC and “Bashneft” ANK” OJSC – for violating Part 1 Article 10 of the Federal Law “On Protection of Competition”.
Price monitoring carried out by FAS Russia, reports of information analysis agencies, market participants and mass media show that from March 2011 prices for gasoline were increasing, but oil companies did not increase their prices similarly. Maximum increase of ex-works prices for gasoline was observed for “TNK-BP” Holding” OJSC and “Bashneft” ANK” OJSC (for some types of motor fuel prices increased by over 30%).
According to Platts, in May 2011 global prices for Premium gasoline went down. At the same time, refineries included in the group of persons of “TNK-BP” Holding” OJSC and “Bashneft” ANK” OJSC increased their prices to the level considerably higher that global markets.
“FAS finds it unacceptable when refineries set wholesale prices not only higher than “netback” prices but also above prices on the global markets. Supporting monopolistically high prices, these oil companies not only infringe the interests of consumers but also restrict free circulation of oil products on the wholesale market within the boundaries of the Russian Federation. Such actions have especially adverse impact when other oil companies carry out repair works on their refineries”, explained Deputy Head of FAS Russia, Anatoly Golomolzin.
At the moment FAS is giving thorough consideration to the case materials, and the date of case hearing will be announced later.
Reference:
In course of the “third wave” of antimonopoly cases against vertically-integrated companies, FAS made decisions regarding “Rosneft” NK” OJSC, “Lukoil” OJSC and “Gazprom Neft” OJSC.
On 10th August 2011, the Commission of FAS Russia found that “Rosneft” NK” OJSC violated Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition”. The company abused market dominance by fixing and maintaining monopolistically high prices for diesel fuel and aviation kerosene in Q4 2010 – January 2011.
On 9th August 2011, the Commission of FAS Russia found that “Lukoil” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition”. The company was fixing and maintaining monopolistically high prices for diesel fuel in Q4 2010 – January 2011 (FAS continues investigating actions of “Lukoil” OJSC on the wholesale market of aviation kerosene).
On 29th July 2011, FAS found that “Gazprom Neft” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition” by fixing and maintaining monopolistically high prices for diesel fuel and aviation kerosene in Q4 2010 –the beginning of 2011, and creating discriminatory conditions for particular counteragents on the markets of diesel fuel and aviation kerosene.