BULGARIAN PARLIAMENT TO HOLD HEARING OVER FUEL CARTEL PROBE

The Parliamentary Economic Committee will hold a hearing Thursday of Petko Nikolov, Chair of the Commission on Protection of Competition (KZK), on the cartel probe conducted among fuel traders.

The investigation spans the activity of fuel retailers Lukoil Bulgaria, Naftex Petrol, Rompetrol and OMV.

It was launched in the summer of 2011 on suspicions of a price-fixing cartel.

Lukoil was also investigated for abuse of dominant position.

Bulgaria's anti-trust watchdog also carried out a sector analysis of fuel trade in 2011.

In the course of the probe, KZK found clauses stipulating discounts in Lukoil's wholesale contracts that could lead to a distortion of competition.

Bulgaria's Law on Protection of Competition envisages a penalty of up to 10% of the company's turnover for the preceding year in such cases.

According to media reports published last week citing the KZK report, four of the biggest fuel retailers in Bulgaria are to be fined over a cartel agreement.