Oil firms accused of price fixing in Russian aviation fuel market

Competition

The Russian Federal Antimonopoly Service launched proceedings Tuesday against Russia’s five largest oil companies over high prices for aviation and diesel fuel.

LUKoil, Gazprom Neft, TNK-BP Holding, Rosneft and Surgutneftegaz are suspected of price fixing, in violation of the law on the protection of competitiveness. The service accused the companies of abusing their dominant market positions through “establishing a monopolistically high price on wholesale markets of aviation kerosene and diesel fuel in the Russian Federation.”

The service said Monday it would soon launch a number of investigations and adopt antimonopoly measures regarding the aviation fuel market. Last week, Russian Prime Minister Vladimir Putin said that should the antimonopoly service fail to adopt measures over increasing prices for aviation fuel, heads would roll. He added that aviation fuel prices in Russia were the highest in the world, which was unacceptable.

State-owned Rosneft and Russian-British joint venture TNK-BP told RIA Novosti, that they adhered to Russian law and would cooperate with the antimonopoly service’s investigation. Gazprom Neft, the oil producing arm of Russian energy giant Gazprom, said the company worked in market conditions and that all fuel price changes were pegged to changing oil prices on the world and domestic markets. “Besides, the list of companies accused includes all large Russian oil companies, which says that collusion or violation of competitiveness conditions would be impossible,” a spokeswoman said. A LUKoil representative refused to comment until the investigation was completed, and Surgutneftegaz was unavailable for comment. (rian.ru)

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

BFK developing regional cycling strategy City

BFK developing regional cycling strategy

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.