OREANDA-NEWS. November 10, 2014. The Federal Antimonopoly Service (FAS Russia) initiated a case against “Bashneft” ANK” OJSC, “Rosneft” Oil Company” OJSC, “Lukoil” Oil Company” OJSC and “LUKOIL-Rosnefteproduct” Ltd. upon elements of manipulations at exchange (Part 4 Article 11 of the Federal Law “On Protection of Competition”).


Earlier, based on the analysis of oil products markets monitoring, FAS established that in January – September 2014, the prices for AI-92 and AI-95 gasoline in the off-exchange large wholesale segment increased by around 20%.

In the exchange large wholesale segment prices for AI-92 gasoline went up by 34%, AI-95 – 35%.

“This situation became one of the reasons of increased prices in the retail segment of oil products market”, said the Head of FAS Department for Control over Fuel-and-Energy Complex, Dmitry Makhonin. “For instance, according to Rosstat, since the beginning of 2014 with the general inflation level at 6.3% prices for AI-92 gasoline grew up by 10%, AI-95 – 7.8%”.

Based on the monitoring analysis, FAS established that one of the reasons underlying the growth of wholesale gasoline prices is increased exchange prices at St Petersburg International mercantile Exchange (“SPIMEX” CJSC).

To reveal the reasons for growing gasoline prices at exchange, the Department for Control over Fuel-and-Energy Complex requested the Registers of all transactions concluded through exchange trading with oil products and registered within the system of e-trading at “SPIMEX” CJSC (Exchange Trading Register) in January – September 2014.

As a result of analyzing the Exchange Trading Register on the basis of Ufa Refineries Group, a considerable number of “second” transactions at exchange for selling oil product by “Bashneft” ANK” OJSC and buying oil products by “Rosneft” Oil Company” OJSC and “LUKOIL-Rosnefteproduct” Ltd. Analysis of transactions characteristics enable FAS to arrive to a conclusion about possible manipulations by the above companies during the exchange trading.

“In other words, we believe that there are signs of manipulations at exchange. Analysis of the available information shows a considerable number of transactions between vertically-integrated oil companies as well as their subsidiaries. We intend to finalize it in the course of the antimonopoly investigation”, emphasized Dmitry Makhonin. “Today a downward trend for gasoline prices in the exchange segment of the wholesale markets and decelerated growth rate of prices in retail gasoline segment are observed. It is not enough, however, so FAS has opened the case. Probably, there will be other cases”.

Reference:

Since 2007 FAS and its regional Offices continuously monitor prices for oil products at the regional level (including municipalities) in the Russian Federation. The monitoring covers vertically-integrated oil companies (their oil-products-supplying subsidiaries) and independent market participants, movement of motor fuel in the regions of the Russian Federation and supply of oil products by independent economic entities, and monitor average weighted wholesale mark-up by companies.

The Department for Control over Fuel-and-Energy Complex continuously controls prices along the entire chain of oil products supply: wholesale – small wholesale – retail. At the same time, prices in the wholesale segment predetermine the situation on the small wholesale and retail markets: the “first sale” price from a refinery accounts for over 70% in retail motor fuel price.

The Department for Control over Fuel-and-Energy Complex also monitors off-exchange prices and external market indices reduced to the conditions of comparability with the domestic market in the Russian Federation.