OREANDA-NEWS. May 29, 2014. The Federal Antimonopoly Service (FAS Russia) received a notification from “UK” Alliance” Oil Company” Ltd. on decreasing retail prices for oil products in the Kamchatka region. Prices for АI-92 gasoline went down by 1 RUB, АI-95 gasoline – by 50 kopecks, diesel fuel – by 1 RUB 25 kopecks.

Based on monitoring retail prices for oil products in the Kamchatka region in October 2013 - May 2014, FAS pointed out that prices for АI-92 gasoline increased by 7.35%, АI-95 gasoline - by 2.78%, and diesel fuel – by 6.44%.

To reveal the reasons and understand whether the price growth in the Kamchatka region was justified, FAS requested information from “Rosneft” Oil Company” OJSC, “RN-Vostok Nefteproduct” (the group of persons of “Rosneft” Oil Company” OJSC), “Alliance” Oil Company” Ltd., “Khabarovsknefteproduct” OJSC (the group of persons of “Alliance” Oil Company” Ltd.) At the moment, FAS is analyzing the submitted information.

Kamchatka OFAS Russia initiated a case against “Kamchatnefteproduct” OJSC upon elements of violating Part 1 Article 10 of the Federal Law “On Protection of Competition”. For the purposes of objective analysis and making a justified decision, the case materials are forwarded to FAS for further consideration.

Under the framework of the measures undertaken to reduce retail prices for oil products and stabilize the situation in the Kamchatka region, FAS held several meetings with representatives of “Alliance” Oil Company” Ltd. Based on the results, “UK” Alliance” Oil Company” Ltd. notified FAS about reducing retail prices in the Kamchatka region.

Overall, retail prices for oil products at fuelling stations in the Kamchatka region in May 2014 decreased: for АI-92 gasoline - by 8.2%, АI-95 gasoline – by 1.3% and diesel fuel - by 7.5%.

“In FAS opinion, retail prices for oil products in the Kamchatka region potentially can be reduced further”, emphasized the Head of FAS Department for Control over Fuel-and Energy Complex, Dmitry Makhinin. “To ensure fail pricing, prices should decrease proportionally in both retail and small wholesale segments of the market of oil products”.

Further work to analyze and establish possibility of adjusting prices for oil products in the Kamchatka region to the economically justified level will take place as part of the antimonopoly case under investigation by FAS Russia.

The situation with oil products prices was discussed at a meeting at Deputy Chairman of the Government of the Russian Federation – the Plenipotentiary Envoy of the President of the Russian Federation in the Far East Federal District, Yuri Trutnev. Following up the meeting, FAS was instructed to verify whether actions of oil companies comply with the antimonopoly law.