Because of illegal price arrangements between producers of oil, Bulgaria's Commission for the Protection of Competition (CPC) fined 14 Bulgarian companies for a total of over 2 million leva, CPC announced on January 17.

The companies Kaliakra from Dorich, Biser Oliva from Stara Zagora and Papas Olio from Yambol were handed maximum fines of 300 000 leva each. Sofia-based New Oil and Zurneni Hrani Bulgaria received fines of 150 000 leva each, while Zvezda from Dolna Mitropoliya, Oliva from Pleven, Pliska from Shoumen and Niva from Kostinbrod were fined 100 000 leva each.
Fines of 80 000 leva each were given to Rosa from Popovo, Gaitek Oliva from Stara Zagora and Zlatna Trakkiya from Kurdjali.

Kris Oil 97 was fined to 20 000 leva, mediapool.bg said

The union of oil and oil-product producers was fined 5000 leva because the illegal price arrangements had been made during union meetings.

The amount of the fines was based on market-share of the companies, who were the largest companies with the ability to dictate the market. The remaining union members simply followed general price increases in the market, CPC said.
Twenty-six oil producers were members of the union, mediapool.bg said.

The decision of the CPC could be appealed within 14 days. CPC said it expected the court to support its decision because there was concrete evidence for illegal price agreements between 2005 and 2007.

Over 2007 the price of oil went up twice, in May and August, with a total of 70 per cent for the year. The increase was not so much the result of bad harvests as well as price arrangements between producers, CPC said. If the harvest was the cause of price increases, then the price increase should happen after September and not already during the summer, mediapool.bg quoted CPC as saying.

CPC based its decision on the outcome of searches and on documents and computer files of the companies. Over the past three years, the companies had taken part in a series of meetings under the pretext of meetings of the management council of the union of oil and oil-product producers, in which the price arrangements had been made.

Besides oil prices, producers had also made agreement on the prices of sunflower seeds, first at around 300 to 320 leva per ton, later 550 to 600 leva per ton, mediapool.bg said.

The price agreements for sunflower seeds from which the oil was produced, set and coordinated the prices for sunflower oil, it violated and limited the effectiveness of free market competition, the CPC said.