The Commission for Protection of Competition requested detailed data from “Lukoil Neftochim Burgas“ AD and “Lukoil-Bulgaria“ EOOD and other major participants in the wholesale fuel market in connection with the proceedings against the companies of the “Lukoil“ group for possible abuse of dominant position.
The CPC does not have the authority to monitor speculative increases in retail fuel prices, unless they are the result of coordinated practices of market participants. Therefore, the Commission requested data from the National Revenue Agency on fuel prices at gas stations for the period from February 23 to March 5 this year. The analysis of the average retail prices of A-95H gasoline and diesel fuel in different regions of the country shows that the price levels of market participants differ significantly and there are no indicators of parallel and coordinated price behavior. Retailers react and increase the prices of A-95H gasoline and diesel fuel to varying degrees. The Commission continues to monitor the market, and also requested additional information from the National Revenue Agency for the period from March 6 to 13 in order to track changes in fuel prices and the possible presence of coordinated practices.
The retail and wholesale fuel markets are interconnected, with changes in wholesale prices having a direct and immediate effect on price levels in the retail market.
Therefore, the CPC continues its active actions in the proceedings against the “Lukoil“ group. Within the framework of the current proceedings, initiated before the appointment of the special commercial manager of the “Lukoil“ group and before the events in the Middle East, the Commission requested from the companies of the “Lukoil“ group and other major market participants data on the availability and capacity of storage facilities for gasoline and diesel fuel, wholesale purchase and sale prices of fuels, as well as the quantities sold on the market. Information on the supplies of crude oil to the refinery in Burgas was also requested, including suppliers, origin of the raw material, quantities and delivery prices. The data should be provided within five days.
Based on the results of the constant sectoral monitoring of the market, as well as the two concluded proceedings for abuse of dominant position against “Lukoil“ with sanctions imposed in the amount of over 134 million euros, on March 4 this year the CPC issued recommendations for taking immediate coordinated actions by the executive branch in order to guarantee market stability and preserve the competitive environment. The main recommendations to the executive branch are to ensure, through the special state manager in the “Lukoil“ group, access for other importers and traders to key infrastructure for fuel storage and transportation, to prevent speculative retention of fuel quantities in storage and speculative increase in fuel prices on the wholesale and retail market, by applying selling prices adequate to the acquisition prices of current stocks.
At the same time, at the meeting of the Interdepartmental Working Group chaired by the Prime Minister on issues of monitoring fuel prices and raw materials for them, the Ministry of Finance was designated as the body for operational coordination of information between the members of the working group. Therefore, today within the framework of the proceedings against the “Lukoil“ group The CPC requested the Ministry of Finance to provide the information collected so far regarding the state of the retail and wholesale markets for crude oil, oil and petroleum products, provided by the Ministry of Energy, the Ministry of Economy, the State Agency for the State Reserve and Wartime Stocks, the Customs Agency, the National Revenue Agency and the special commercial administrator.
Within the framework of the proceedings against “Lukoil”, the CPC is actively cooperating with the competent institutions, including the National Revenue Agency and the Customs Agency, and the Commission remains ready to cooperate fully, within its powers, with the executive branch, which has direct powers regarding speculative increases in retail fuel prices.