OREANDA-NEWS. July 21, 2009. The Kaliningrad OFAS Russia imposed administrative charges upon "LUKOIL-Severo-Zapadnefteproduct" Ltd. and fined the company 57,531,290 Rubles for fixing monopolistically high prices for petrol (grades АI-92, АI-95) and diesel fuel, reported the press-centre of FAS Russia.

On 18th March 2009, the Commission of the Kaliningrad OFAS Russia found that "LUKOIL-Severo-Zapadnefteproduct" Ltd. violated the Federal Law "On Protection of Competition" by abusing its dominant position.

The experts of the Kaliningrad OFAS Russia identified elements of fixing monopolistically high prices by the company, when they were inspecting whether the prices for petrol and diesel fuel on the regional market were reasonable in the context of reduced prices on the global markets of oil products. Experts also analysed materials presented by "LUKOIL-Severo-Zapadnefteproduct" Ltd.

The Commission of the Kaliningrad OFAS Russia discovered that from June 2008 to January 2009 the level of the mark-up per unit (retail margin - the difference between the wholesale and retail prices per 1 liter of fuel) increase by a factor of 5.98 for AI-92 petrol, for АI-95 - by a factor of 5.38, and for diesel fuel - by a factor of 5.62.

As a result of the actions of "LUKOIL-Severo-Zapadnefteproduct" Ltd., the prices fixed from 1st October 2008 exceeded the sun of required costs of production and distribution of those goods and the profit. Retail prices were not decreased in proportion to the purchasing prices, which enabled the company to gain additional, unreasonably large income.

Due to the character of the pricing in the periods in question, the burden of financing development of an economic entity was disproportionately shifted to retail customers.

In May 2009, the Kaliningrad OFAS Russia initiated proceedings for imposing administrative liability upon "LUKOIL-Severo-Zapadnefteproduct" Ltd., that was found guilty in violating the antimonopoly legislation.

In course of the case investigation, representatives of the oil trader did not admit that "LUKOIL-Severo-Zapadnefteproduct" Ltd. committed an administrative violation.

However, the regional antimonopoly body concluded that the fact of violating the Federal Law "On Protection of Competition" by the company was sufficiently proved.

The violation constitutes significant public danger, as it infringed the interests of consumers using petrol (grades АI-92, АI-95) and diesel fuel.

Under Article 14.31 of the Code of the Russian Federation on Administrative Violations, the Kaliningrad OFAS Russia classified the company's actions as "…recognised abuse of dominant position, prohibited by the antimonopoly laws of the Russian Federation" and imposed an administrative fine 57,531,290 Rubles.

The antimonopoly body is currently investigating possibility of imposing administrative charges upon company's officials.