Currently wholesale prices for oil products are growing up considerably.
In this connection, the Federal Antimonopoly Service (FAS Russia) would like to inform:
Wholesale and retail markets of oil products are monopolised, which does not contribute to fair pricing. Therefore, FAS Russia and its regional offices carry out ongoing monitoring of those markets; and, in particular, continuously monitor wholesale and retail prices for oil products in the regions. If elements of antimonopoly violations are discovered, the antimonopoly bodies initiate cases against oil companies for engaging in concerted actions to fix and maintain prices for oil products or abusing dominant position.
Practically all decisions and determinations issued by FAS Russia with regard to antimonopoly violations related to oil product pricing were appealed to arbitration courts. Judicial practice, however, shows a positive trend: the courts repeatedly confirmed validity and rightness of the FAS Russia's decisions. In 2008 FAS Russia and its regional offices initiated over 150 cases for antimonopoly violations in fuel and energy complex and imposed more than 6 billion Rubles fines upon investigating the cases.
In particular, FAS Russia issued determinations to oil companies requesting them, for instance, to prevent economically and technologically unjustified reduction of supplies of oil products to the domestic market, which would secure sustainable supply of oil products to meet the demand on domestic market, as well as to avoid compensating reduced profitability of supplying oil and oil products to external markets with increased prices for oil products on domestic wholesale market that can result in fixing monopolistically high prices and (or) creating discriminatory conditions.
At the same time, Q1 2009 showed unreasonable growth of prices. Upon this fact, FAS Russia initiated proceedings against the largest oil companies: «LUKOIL» OJSC, «TNK-BP Holding» OJSC, «Rosneft» Oil Compny» OJSC and «Gazprom Neft» OJSC.
The situation repeated again in May when prices jumped up considerable on the wholesale market of oil products.
Legal opinion regarding the companies' actions will be given upon investigating the above cases.
Cases against «TNK-BP Holding» OJSC and «Gazprom Neft» OJSC are scheduled for 25th June 2009.
Should antimonopoly violations be confirmed, FAS Russia will be imposing considerable fines in view of the recidivist violations.
