OREANDA-NEWS. September 18, 2009. The Ryazan Office of the Federal Antimonopoly Service (the Ryazan OFAS Russia) found that "Ryazan'nefteproduct" OJSC breached Clause 1 Part 1 Article 10 of the Federal Law "On Protection of Competition" (fixing and maintaining monopolistically high wholesale prices), reported the press-centre of FAS Russia.

The case against "Ryazan'nefteproduct" OJSC was initiated in February 2009 upon the signs that the company had been setting monopolistically high prices for motor fuel in retail markets of the Ryazan region.

The Ryazan OFAS Russia pronounced that "Ryazan'nefteproduct" OJSC had dominant position in retail markets of motor fuel in the Ryazan region, although the company's market share did not exceed 50%. Dominance, or the company's ability to exercise decisive influence upon retail prices, was determined by the fact that "Ryazan'nefteproduct" OJSCwas a wholesale seller of motor fuel for its competitors in retail markets.

The Ryazan OFAS Russia established that retail mark-ups of "Ryazan'nefteproduct" OJSC for different types of fuel increased by the factor of 2.4 - 2.9 per year. With such high mark-ups, the company was able to compensate considerably increased commercial and administrative expenses and gain profit, commensurable with the book value of its fixed capital. It took place amid some sale reduction in physical terms.

The Ryazan OFAS Russia issued a determination to "Ryazan'nefteproduct" OJSC to stop the antimonopoly violations. The company is instructed to not use retail mark-ups for motor fuel that exceed the average mark-ups for 2007, adjusted for the inflation rate. Currently the Ryazan OFAS Russia is considering imposing administrative charges upon the company. For abusing dominant position, "Ryazan'nefteproduct" OJSC is facing a "turnover fine" in the amount of 1-15% of the proceeds in the preceding year.