Germany’s oil and fuel market is facing potential competition risks due to the current pricing methods, according to a report released by the country’s antitrust watchdog, Bundeskartellamt, on Wednesday.
The report, which concludes a sector inquiry launched in 2022, highlights concerns over the pricing mechanisms in the oil and fuel market, particularly in the aftermath of rising fuel prices following Russia’s invasion of Ukraine.
The inquiry focused on fuel supply chains, contract terms, and pricing structures in Germany’s fuel trading sector. Bundeskartellamt gathered information from tank farm operators, wholesalers, gas stations, and price assessment providers.
Andreas Mundt, president of Bundeskartellamt, commented on the findings, stating that the inquiry revealed challenges to effective competition in the German oil sector.
“While price assessments themselves are not inherently anti-competitive, the way they are currently calculated poses significant risks to competition,” Mundt explained.
The report raised concerns over the current price assessment methods used in Germany, suggesting they may not fully protect the market from anti-competitive practices. It noted that the methodologies for calculating price assessments and their real-world application are questionable.
The watchdog warned of a heightened risk of collusion and market manipulation. The current price assessment systems make competitors’ pricing behavior more transparent, which could encourage collusive actions in the spot market, the report stated.
Additionally, the design of the price assessment systems could lead to manipulation, with market players potentially exploiting the system by selectively reporting data to gain an advantage, Bundeskartellamt concluded.
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