Fuel Market Violations Not Found by Competition Authority

Competition Authority has closed the in-depth investigation in the fuel market without finding violations of the law "On Protection of Competition".

On June 4 last year, the Competition Commission decided to open an in-depth investigation procedure in the market of loading and unloading, import, storage, wholesale of fuels, for the period from January 1, 2017 to October 30, 2020.

Currently, there are three companies operating in Albania that have a dominant position in the market of loading-unloading and storage of fuels. Petrolifera Italo-Albanese (PIA) holds a dominant position in the market of loading and unloading and storage of fuels in the port of Vlora-1, the company Romano Port holds a dominant position for the capacity of up to 20 thousand tons in the market of loading and unloading of ships transporting fuels in the coastal area of ??Porto Romano, Durrës, while the company Porti MBM holds a dominant position for a capacity of over 20 thousand tons and with diving over eight meters in the market of loading and unloading of ships transporting fuel, also in the coastal area of ??Porto Romano, Durrës.

The tariffs approved by the State Authorized Body for loading - unloading of fuels as from the concession companies are the same. In terms of other port tariffs, the maximum levels are also the same, but the decision states that the MBM Port performs several different services from Romano Port due to its geographical position and therefore has some additional tariff items.

In addition to the monopoly of each of the enterprises in the respective market, another feature of this market that increases the risks of abuse of a dominant position is the vertical integration of enterprises in the port of Porto Romano. This means that the shareholders of the ports are also present in other links of import and wholesale and retail trade of fuels.

However, based on the conduct of the three undertakings under investigation, regarding the evaluation of contracts, the tariffs applied and the economic and financial strength, the Competition Commission has concluded that none of them has abused its dominant position in the market.

Regarding the import and wholesale market, the investigation has shown that most of the fuels imported in our country are over 80% diesel and less than 20% gasoline. Most of the import of gasoline and oil, about 90%, for the period under investigation, is carried out through the Port of Durres and the rest is realized through the port of Vlora. According to the Competition Authority, a significant number operate in the fuel import market and the market concentration indicator (HHI index) has been declining during the investigation period.

Based on the conclusions of the investigation report, the Competition Commission has closed the in-depth investigation procedure in the market of loading and unloading, import, storage, wholesale of fuels without finding charges against companies operating in these markets.

(Source: Monitor)