FAS ISSUED LUKOIL-YUGNEFTEPRODUKT WARNING ON THE NEED TO REDUCE RETAIL GASOLINE PRICES

Being a dominant in the regional market, the company increased retail gasoline prices in the daytime at individual gas stations

The Office of the Federal Antimonopoly Service in the Republic of Kalmykia (Kalmykia OFAS Russia) revealed indications of violation of antimonopoly legislation in the actions of LUKOIL-Yugnefteprodukt LLC, occupying a dominant position in the motor fuel sales regional market [1]. From January to April 2021, the company has set different gasoline prices at the gas stations in Elista.

As the company explained, it decided to conduct a promotion at individual gas stations to increase customer loyalty and evenly distribute the customer flow during the day. In particular, LUKOIL-Yugnefteprodukt increased the price at certain gas stations by 40-60 kopecks per liter of gasoline from the general price level during the day, and at nighttime reduced it by 10 kopecks.

The OFAS concluded that the conduction of that promotion cannot be considered an economic or technological justification for increasing the gasoline price at individual gas stations.

In this regard, the Kalmykia OFAS Russia issued to LUKOIL-Yugnefteprodukt a warning about the need to stop the unjustified increases in retail gasoline prices at the company's gas stations where the promotion was conducted.

The warning must be executed before 11 May 2021, otherwise the OFAS will initiate a case on violation of the antimonopoly legislation.

Earlier, the service instructed its regional offices to strengthen monitoring of the oil products market, paying special attention to the reasonableness of changes in the prices for 92 RON, 95 RON gasoline and diesel fuel at gas stations.

Forreference:

[1] paragraph 6 of part 1 of Article 10 of the Law on Protection of Competition prohibits dominants from unreasonably setting different prices for the same products