OREANDA-NEWS. March 27, 2012. The Arbitration Court of St Petersburg and the Leningrad region upheld the decision and determination of the Office of the Federal Antimonopoly Service in the Kaliningrad Region (Kaliningrad OFAS Russia) that “LUKOIL-Severo-Zapadnefteproduct” Ltd. unlawfully increased fuel prices, reported the press-centre of FAS Russia. 

The investigation was initiated upon analysis of the documents submitted by regional sellers of motor fuel with regard to simultaneous increase of prices for gasoline and diesel fuel in the Kaliningrad region in November 2010 – January 2011.

The Commission of Kaliningrad OFAS Russia established that in Q4 2010 “LUKOIL-Severo-Zapadnefteproduct” Ltd., taking advantage of overall growth of fuel prices due to increased purchasing prices of the main market competitors, increased its retail prices for gasoline with octane numbers АI-80, 92 and 95 although the company’s costs remained stable and did not change the fixed gasoline prices when its production and sales costs went down considerably.

The antimonopoly body found that the company violated Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition” and issued a determination to stop the antimonopoly violation. OFAS also fined the company over 9.5 million Rubles.

The company disagreed with the conclusions of Kaliningrad OFAS Russia and filed a lawsuit.

“The antimonopoly law prohibits economic entities with dominant position on the market, such as “LUKOIL-Severo-Zapadnefteproduct” Ltd., to fix and maintain monopolistically high prices for goods. The same is correct for monopolistically low prices. The result of such unlawful actions can be restricting and eliminating competition, infringing the interests of other persons”, pointed out the Head of Kaliningrad OFAS Russia, Olga Bobrova.