RIGA - The Latvian Competition Council has decided to launch an investigation into alleged market share abuses by Mazeikiu Nafta Tirdzniecibas Nams (Mazeikiu Nafta Trade House), the Latvian wholesaler of the Lithuanian refinery.
The call to look into Mazeikiu Nafta's operations was first voiced by Economy Minister Krisjanis Karins, who suspects that the oil concern was setting excessively high wholesale prices for 95E gasoline, Ieva Ziberga, the minister's aide, said.
"Citing the competition law, the minister asked the Competition Council to probe Mazeikiu Nafta's operations and to take measures envisaged in the law in case of necessity," the aide said.
After comparing wholesale prices set by Mazeikiu Nafta with wholesale prices in northern Europe, the ministry found that in August Mazeikiu prices were 5 percent higher, and in early September some 10 - 20 percent higher than in northern Europe.
The ministry believes that such a discrepancy is unreasonable. "Taking into account that Mazeikiu Nafta has no competitors on our market, as there are no producers of gasoline 95E of EU standards in the vicinity, such abuse of dominant position by setting excessively high... prices could be deemed as malicious," Ziberga said.
Once it opens the case, the competition watchdog will have to carry out the investigation and pass a decision in six months, ministry officials said.
In the meantime, the ministry is continuing to work on persuading the European Commission to allow the government to import sub-standard gasoline from Russia and Belarus as a step to introducing competition on the domestic fuel market.
