FAS to fine Lukoil subsidiaries for unreasonable gasoline prices in two regions

The Federal Antimonopoly Service (FAS) recognized the overpricing of gasoline by Lukoil-Tsentrnefteprodukt and Lukoil-Uralnefteprodukt in the Nizhny Novgorod Region and the Perm Territory as unfounded, informed department press office. Companies will be fined, the size of the fine has not yet been named.

“The expenses of companies that are necessary for the retail sale of AI-92 and AI-95 gasoline were reduced due to a decrease in the cost of purchasing petroleum products in the wholesale segment. Thus, there were no objective economic grounds for increasing the cost at gas stations,” the statement said.

The department emphasized that the actions of companies infringe on the rights and interests of consumers. In the near future, Lukoil’s subsidiaries will have to eliminate the violations. The FAS Headquarters will continue to analyze the situation on the oil products market.

According to the FAS, the regional OFAS have completed consideration of cases against the companies Lukoil-Tsentrnefteprodukt and Lukoil-Uralnefteprodukt on grounds of violation of the law on protection of competition. At the same time, the FAS established their dominance in the commodity market of petroleum products within the boundaries of the regions. In particular, the share of Lukoil-Uralnefteprodukt exceeds 70%.

The case against the companies “Lukoil-Tsentrnefteprodukt” and “Gazprom Neft – regional sales” on the grounds of violation of the law on protection of competition in the Nizhny Novgorod region was initiated in January of this year. The FAS also noted that the subsidiaries of Lukoil and Gazprom Neft have established collective dominance in the commodity market of petroleum products. According to the Nizhny Novgorod OFAS, companies sell automotive fuel at retail prices that are significantly higher than the level of expenses required to ensure the production and sale of AI-92 and AI-95 gasolines.

The Lukoil-Uralnefteprodukt organization was suspected of discrimination against Perm consumers in comparison with consumers from other regions in early February of this year. The reason was a sharp increase in the cost of gasoline at gas stations in October-November last year. According to the FAS, then the cost of gasoline increased by an average of 2.5 rubles. per liter, which is significantly higher than in the previous nine months of 2021. In addition, the company has refineries and oil depots in Perm, which allow reducing fuel transportation costs, which was also the reason why the FAS initiated the case.

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