FAS RUSSIA: THE COMPANY LUKOIL-URALNEFTPRODUCT FULFILLED A WARNING ABOUT LOWER RETAIL GASOLINE PRICES

Previously, the company set different prices at its gas stations in the region, while occupying a dominant position in the Perm Region market

In the current conditions on the country's fuel market, the Federal Antimonopoly Service instructed the Regional Offices to strengthen monitoring of retail prices for petroleum products. If the results reveal signs of violation of the Law on the Protection of Competition, the authority takes antimonopoly response measures.

Thus, the Perm Regional Office of the FAS Russia revealed signs of violation of antimonopoly law in the activities of Lukoil-Uralnefteprodukt LLC [1]. The company decided to conduct a marketing study at individual gas stations and check the elasticity of demand. Lukoil-Uralnefteprodukt increased the price at individual gas stations by 50-90 kopecks per liter during the day from the general level, and at night – reduced it by 10 kopecks.

The Regional Office of the FAS Russia concluded that the company's research could not be considered an economic or technological justification for the price increase. According to the Law, Lukoil-Uralneftproduct which dominates the market of the Perm Region, was not entitled to unreasonably set different prices for the same product.

The company was issued a warning on the need to reduce retail gasoline prices at its gas stations to the general level. On March 26, Lukoil-Uralnefteprodukt announced its execution.

The FAS Russia and its Regional Offices will continue to monitor prices on the oil products market on an ongoing basis in order to avoid a sharp and unjustified increase in retail gasoline prices.

For Reference:

[1] paragraph 6 of part 1 of Article 10 of the Law on Protection of Competition