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JSE
THEE
THEE - The Commission refers its price fixing findings against major oil
companies
The Competition Commission
Press Release
04 March 2010
The Commission refers its price fixing findings against major oil companies
The Competition Commission today referred to the Tribunal its findings of price
fixing in the supply of bitumen against Chevron SA (Pty) Ltd ("Chevron"), Engen
Limited ("Engen"), Shell SA (Pty) Ltd ("Shell"), Total SA (Pty) Ltd ("Total"),
Masana Petroleum Solution (Pty) Ltd ("Masana"), Southern African Bitumen
Association ("SABITA"), Sasol Limited ("Sasol") and Tosas (Pty) Ltd ("Tosas"),
to the Tribunal for adjudication.
Bitumen is a residual fraction of crude oil. Bitumen and modified bitumen
products are mainly used in road construction to tar and rehabilitate roads,
which is mainly sold to government entities.
The Commission initiated this investigation on 12 January 2009, following an
application for leniency by Sasol and its subsidiary Tosas. In its application
Sasol admitted that together with its subsidiary, Tosas, it had colluded with
its competitors and was granted conditional immunity from prosecution provided
it cooperates with the Commission in its investigation and prosecution. The
Commission has asked the Tribunal to impose an administrative penalty of 10% on
each of the firms involved, except for Sasol and Tosas. Settlement terms have
been agreed in principle with Masana whereby it (Masana) admits guilt and will
pay an administrative penalty of R13 million. The settlement agreement will be
referred to the Tribunal for confirmation shortly.
In its investigation the Commission found that the respondents engaged in
collusive conduct from around 2000 until at least December 2009. The respondents
collectively determined and agreed on pricing principles, including a starting
reference price and monthly price adjustment mechanism.
This was facilitated through meetings convened by SABITA, as well as through
correspondence through SABITA and direct communication between oil companies.
The conduct resulted in final customers being charged prices which were not
competitively determined.
All of the respondents compete in the supply of bitumen and bituminous products.
They are also suppliers of a range of other petroleum products.
`The uncovering of the cartel is another important step in the Commission`s work
in addressing anti-competitive conduct affecting infrastructure development,`
says Commissioner Shan Ramburuth.
ENDS
Further info:
Keitumetse Letebele, HOD: Communications
012 394 3183/ 082 783 3397/ keitumetsel@compcom.co.za
Date: 04/03/2010 14:19:01 Produced by the JSE SENS Department.
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