VILNIUS, March 16 — Lithuania’s Competition Council said recent increases in fuel prices and retail margins do not currently provide grounds to suspect price coordination among petrol stations, but the authority will continue monitoring developments in the market.
The authority said it is analysing retail fuel price trends and has requested information from fuel station operators and oil company Orlen Lietuva, including details on pricing principles and methodologies used to set retail prices.
The Competition Council issued its position in response to an inquiry from member of parliament Birutė Vėsaitė regarding recent fuel price increases.
According to the authority, changes in fuel prices are influenced by a range of international, economic and market factors. It highlighted that geopolitical developments — including the current situation in the Middle East — can affect crude oil supply and lead to price volatility on international markets.
The Competition Council said its role in monitoring price developments across markets is to determine whether companies make retail pricing decisions independently and whether their conduct complies with competition law.
An analysis of publicly available data on fuel prices excluding taxes in Lithuania, neighbouring countries and across the European Union showed that petrol and diesel prices rose in Lithuania broadly in line with trends elsewhere.
Between March 2 and March 9, average petrol prices excluding taxes increased by 10.4% to 20% across the compared countries. In Lithuania, petrol prices excluding taxes were around 10% lower than the EU average of €0.825 per litre.
Diesel prices excluding taxes rose by €0.202 to €0.295 per litre over the same period across the analysed countries, representing increases of 26.5% to 33.1%.
“Fuel price changes in Lithuania essentially correspond to trends in neighbouring countries. Therefore, price dynamics alone do not provide grounds to suspect possible price coordination among petrol stations in Lithuania,” the authority said.
The Competition Council also analysed changes in retail fuel margins that could signal possible collusion. Its review of public data showed that retail margins had not significantly influenced final fuel prices.
For example, the diesel retail margin fell from €0.111 per litre to €0.090 per litre between March 2 and March 9, while the retail price of diesel excluding taxes increased from €0.802 per litre to €1.018 per litre during the same period.
The authority also noted that fuel prices are publicly displayed at petrol stations, meaning retailers can respond to competitors’ pricing changes and adjust their own prices accordingly. Such parallel behaviour is not in itself considered a breach of competition law unless there is evidence of direct or indirect contact aimed at coordinating market conduct.
Competition Council chair Jolanta Ivanauskienė presented the institution’s analysis at the Lithuanian parliament during a discussion on fuel prices organised by the Liberal Movement parliamentary group.
Ivanauskienė said the authority had requested additional information from fuel retailers and Orlen Lietuva in order to properly assess the recent rise in fuel prices. Once the information is received, the Competition Council will evaluate it and take action if circumstances suggesting potential breaches of competition law are identified.
Source: https://kt.gov.lt/lt/naujienos/konkurencijos-taryba-pateike-savo-pozicija-del-degalu-kainu-pokyciu
