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BP and Shell petrol stations, two oil companies have had their offices visited by the European Commission over allegations of price-fixing. PA/PA Wire/Press Association Images
Oil Prices
Oil companies raided in price-fixing investigation
An inquiry has begun into claims oil prices may have been fixed for over a decade which could have resulted in petrol prices being kept artificially high.
BP, STATOIL AND Shell are being investigated for suspected oil-price fixing after the European Commission confirmed it carried out “unannounced inspections on several companies active in and providing services to the crude oil, refined oil products and biofuels sectors”.
In a statement yesterday, the Commission said it “has concerns that the companies may have colluded in reporting distorted prices to a Price Reporting Agency to manipulate the published prices for a number of oil and biofuel products”. The statement went on to say that they were very concerned that the oil giant companies “may have prevented others from participating in the price assessment process, with a view to distorting published prices”.
Prices high on garage forecourts
Keeping the price high on the oil pumps across Europe, including Ireland, is deeply concerning to the Commission, who said that any such behaviour would be a serious violation of European antitrust rules that prohibit cartels and restrictive business practices and abuses of a dominant market position.
“Even small distortions of assessed prices may have a huge impact on the prices of crude oil, refined oil products and biofuels purchases and sales, potentially harming final consumers,” said the Commission.
In a statement to TheJournal.ie, BP said:
BP is one of the companies that is subject to an inspection that was announced yesterday by the European Commission. We are cooperating fully with the inspection and unable to comment further at this time.
The BBC reports that the oil giants are facing claims that price-fixing could have been going on for more than a decade. The Prime Minister, David Cameron is said to find it “deeply worrying” if prices have been driven up for consumers.
The statement from The Commission said that “unannounced inspections” are permitted when there is a suspicion of anti-competitive practices.
The Department of Communications, Energy and Natural Resources told TheJournal.ie:
The Department will watch with interest the outcome of this EU process and assess any implications for the Irish market, in cooperation with relevant Ministers (including Minister Bruton).
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