OREANDA-NEWS. March 16, 2011. The Vologda Office of the Federal Antimonopoly Service (OFAS Russia) will be considering a case against “Lukoil-Volganefteproduct” Ltd.” initiated upon the signs of the oil company abusing its market dominance, reported the press-centre of FAS Russia.

OFAS identified the signs of antimonopoly violations as fixing and maintaining monopolistically high price for diesel fuel, economically (technologically) unjustified reduction (termination) of trading with diesel fuel despite market demand for it, and withdrawing diesel fuel from circulation, which resulted in increasing prices for diesel fuel.

Investigating the case, experts of Vologda OFAS Russia must identify the causes of the shortage of diesel fuel in the Tyumen region and the growth of prices at service stations. From November 2010 to February 2011 retail prices for diesel fuel increased by more than 30%.In four months prices on the wholesale market of diesel fuel in the Vologda region went up by more than 26%.

Representatives of forestry industry and the Government of the Vologda region will take part in the meeting of the Commission of Vologda OFAS Russia.

In March 2011, the Chairman of the Government of the Russian Federation, Vladimir Putin, instructed FAS Russia to study out the situation with increasing prices for diesel fuel for agricultural producers in the Vologda region. Earlier at a meeting in the Bryansk region the Chairman of the Government of the Russian Federation was approached by the Chairperson of the Union of Farmers and Private Subsidiary Farming of the Tver region, Ms. Maksimova, who complained about growing fuel prices at “Lukoil” service stations in the Vologda region.

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On 9th February 2011, FAS Russia initiated a case against “Gazprom Neft” OJSC, “Lukoil” OJSC and “Rosneft” NK” OJSC upon the signs of violating the antimonopoly law.

The Antimonopoly Service identifies such signs of antimonopoly violations in the companies’ actions as fixing and maintaining monopolistically high prices, withdrawing the goods from circulation, which resulted in growing prices, and creating discriminatory conditions with regard to supplies of fuel to the companies – members of the group of persons of the vertically integrated oil companies in comparison with the companies that are not included in the same group of persons.

According to FAS Russia, from October 2010 to the end of January 2011 prices for winter diesel fuel increased by 53%. In the same period, prices for aviation kerosine increased by over than 30%.

The Antimonopoly Service also has questions to “TNK-BP” OJSC, “Surgutneftegaz” OJSC and “Bashneft” ANK” OJSC that according to a FAS Russia’s estimate are included in the companies that have collective dominance on the market of oil products in 2010. FAS Russia continues its preliminary investigation of these companies.

Earlier FAS Russia already fined oil companies for abusing market dominance. The total sum of the fines imposed following the ‘first” and “second waves” of cases against oil companies was 15 billion Rubles.