OREANDA-NEWS. May 16, 2013. The Market Analysis Commission of the Federal Antimonopoly Service (FAS Russia) made changes to the Guidance for drafting analytical reports on the state of competitive environment on retail and small wholesale markets of diesel fuel and gasoline, in view of the comments made by regional Offices of the Federal Antimonopoly Service (OFAS Russia).

The amendments concern the time-frame for studying retail markets. For instance, earlier the study covered 2012 – the first half of 2013. Now the study period is limited to 2012. The change is made because the first six months of 2013 do not give understanding of the state of competition in 2013. Other factors include acquiring “TNK-BP” by “Rosnef” and approving “commercial practices” by “Gazprom Neft” in 2013 for sales of oil products in Russia. The state of the market in 2013 shall be analyzed in 2014.

Due to the specifics of local retail markets of gasoline, the Chapter on “product market boundaries” will be devised by FAS Russia on the sub-groups of octane number (low-octane and high-octane, since it makes a significant difference between gasoline grades), or according to gasoline grades. Earlier product boundaries were determined only as АI-92 and АI-95. The decision will be made based on the survey of buyers and sellers.

The Guidelines clarifies the product boundaries of diesel fuel. The product boundaries of the market shall be determined for all regional FAS Offices – for diesel market in general as well as for all diesel grades (summer, winter, arctic) that have the same functional purpose and the same governments standards, and their delineation and differences in the technical characteristics are determined by the climatic conditions common for all consumers rather than by the differences in the fuel quality. The composition of buyers and sellers shall remain unchanged. Earlier, the product boundaries were determined on the basis of federal districts.

The Guidelines clarify the structure of economic entities in retail and small wholesale segments. Earlier only networks of fuelling stations were classified as retail sellers. FAS is of the opinion that the buyers cannot be limited to the networks since individual refueling stations are also market participants and have a considerable market share. In the same in the wholesale segments the buyers were earlier limited to mini-refineries and oil depots. FAS believes that the structure of market participants should not be so narrow and intends to include the entire range of economic entities operating on the market. Now suppliers on small wholesale gasoline markets are economic entities supplying gasoline in the small wholesale segment, including entities buying the goods predominantly for reselling. For retail sector, the Guidelines specify the factor of conversion of gasoline and diesel fuel from tons to liters.

“Clarifying the technique for analyzing oil products markets enables us to obtain more complete and up-to-date information necessary to make decisions and draft proposals for developing competition on these markets”, said Deputy Head of FAS, the Chairman of FAS Commission on Market Analysis, Andrey Tsyganov.