The Bulgarian Commission for the Protection of Competition (CPC) announced that it has imposed a fine of some 34.5 million euros on Lukoil Bulgaria for the abuse of dominant market position. The regulator has found that the company applied a price squeeze against its competition in the wholesale market for motor fuels in Bulgaria, which may prevent, restrict or distort competition on the fuel markets and affect the interests of consumers.
The statement from the CPC said that the investigation was initiated at the request of OMV Bulgaria and subsequently joined by Insa Oil and other wholesale market participants. During the investigation, the regulator gathered a huge amount of information from Lukoil Bulgaria, Lukoil Neftochim Burgas, the Customs Agency and almost all major traders and fuel warehouse holders. According to analyzed data, Lukoil Bulgaria owns more than half of the market and is the leader in the wholesale of motor fuels.
The regulator says that thanks to its timely intervention, Lukoil Bulgaria’s strategy to gradually capture the wholesale fuel market has been foiled. The company tried to create the impression that its new pricing policy imposed on traders in 2021 would lead to lower prices for end consumers. A unilateral pricing policy has been applied in the relevant markets, resulting in a price squeeze.
