FAS ISSUED TO THE COMPANY LUKOIL-YUGNEFTEPRODUKT A WARNING TO REDUCE THE RETAIL GASOLINE PRICES IN THE VOLGOGRAD REGION

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 Volgograd Region (Volgograd OFAS Russia) revealed signs of violation of the antimonopoly legislation in the actions of LUKOIL-Yugnefteprodukt LLC, occupying a dominant position in the motor fuel sales regional market [1]. From December to May 2021, the company has set different gasoline prices at the gas stations in the region.

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 30-60 kopecks per liter of gasoline from the general price level in the daytime, and at night 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 Volgograd OFAS Russia issued to LUKOIL-Yugnefteprodukt a warning 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 within 10 days from its date of issue, 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.

A similar warning was issued to the company by the Kalmykia OFAS Russia at the end of April this year for setting different gasoline prices at the gas stations in the Republic of Kalmykia. The Lukoil-Yugnefteprodukt company fulfilled the warning of the FAS Russia and reduced gasoline prices before the due date of the 10 days period prescribed by law.

For reference

[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.