Record fine for leading oil companies

According to the President of the Competition Council, Bogdan Chirițoiu, the leading oil companies in Romania have been fined 880 million lei, which represents 3 percent of their turnover in 2010, because they agreed to withdraw the Eco Premium gasoline from the market in 2008.

Bogdan Chiritoiu added that Petrom received the highest sanction, for having been the initiator of that action.

Bogdan Chiriţoiu also stated that “this is the highest fine given by the Competition Council in Romania”.

He pointed out that it was the only sanction given to oil companies based on direct evidence in the European Union.

The Competition Council announced in November 2011 that they had evidence that the companies which sell fuel and were investigated by authorities in 2005 broke the law.

“Obviously, when talking about large companies and fuel market in Europe, I have no reservations”, said Bogdan Chiriţoiu, the President of the Competition Council.

Fuel price rise “is unjustified”

In March 2011 Prime Minister Emil Boc asked the National Agency for Fiscal Administration to conduct a tax audit on oil companies in order to verify if the revenues coming from fuel price rising are reflected in the companies’ profit and thus, in taxes.

Ministry of Public Finances Gheorghe Ialomiţianu also said that consecutive fuel price rise was unjustified and it occurred because the producers had planned this rising, but also because of how the oil companies had been privatised.

“It is a bad thing that the prices are rising because this rise is unjustified. Many producers have said that it is because of the excises. I think these producers had in plan to rise the prices.”

“I am asking both NAFA and the Competition Council to continue their adit because the price rise is ill-founded; we shall also check if the law has been broken. This price rising is sure to happen because of the way of privatisation, like Mr. Prime Minister said, because the privatisation was made improperly”, said George Ialomiţianu.

In 2010, the National Tax Administration Agency issued a report on fuel producers and distributors which said that the pump price had been unjustifiably increased over the year.

The European Commission has announced that it sustains the audit results and recommended the sanction of the investigated companies, since the Romanian profile market is part of the European one.

The highest sanction that the Competition Council may apply to a company is to fine it 10 percent of its turnover.

The companies MOL, Petrom and Rompetrol have announced that they will appeal against the decision of the competition authority.

Protests at gas stations in Romania

At the beginning of last year protests were held against fuel price rise in Romania.

Through several sites, drivers were called to boycott the gas stations in several cities.

Many drivers answered the call, going to gas stations, where they fueled in very small amounts and then they paid in change.

Instead of selling the usual quantity of fuel, many gas stations sold insignificant quantity, and therefore they charged little.

Several gas stations were forced to temporarily cease their activity and some were even closed.

Protests started in Timișoara, and then the phenomenon spread within the country.

Translated by: Cătălina Virvescu
MA Student, MTTLC, Bucharest University