THE OPPOSITION warned yesterday that consumers could ultimately be forced to pay a fine imposed on to petrol companies for price-fixing and cartel-like behaviour.
T
he Commission for the Protection of Competition (CPC) fined four fuel companies €42.9 million for “concerted practice”, a term meaning the informal and tacit understanding between firms to influence the conduct of the market
The violations refer to the period from October 2004 to late 2006.
CPC chairman Costakis Christoforou said the decision would change certain practices and the market operation will be supported by a healthy base.
DISY deputy chairman Averof Neophytou yesterday suggested that the companies could consider the fine as “additional cost” and transfer it on consumers.
“Whatever they consider it, they will put on the additional cost on the pump price,” Neophytou said.
He said political parties and consumer associations should examine if it would be possible with the current legislation or an amendment for such fines to benefit consumers.
The fine, payable within three months, will go to state coffers.
Ruling AKEL deputy Pambis Kyritsis said if companies tried to pass the fine onto consumers it would mean them colluding again.
Kyritsis said the state could return the money to consumers in the form of social projects, infrastructure and development that would benefit the public.
Companies said they would appeal the decision before the Supreme Court.
At least two of them were also looking into all their options including applying for an interim order to delay payment of the fine until the Supreme Court rules on the matter.
The heaviest fine was imposed on EKO – €14.26 million while Exxon Mobile will have to pay €13.36, Petrolina was fined €12.56 million and Lukoil €2.7 million.
Despite their satisfaction about the fine, consumers are still worried because as they say there is no effective means to check if there is a repeat.
“The decision vindicates us because all these years we were complaining about fuel prices and the state services were reassuring us saying everything was under control,” said Consumer Union and Quality of Life chairman Loukas Aristodimou.
Aristodimou said consumers cannot be protected effectively in Cyprus with the existing institutions.
“Effective protection will only be achieved with the appointment of an independent consumer commissioner and those who do not want it are those blocking consumer protection,” Aristodimou said.
He suggested the state returned the money to consumers by footing the planned hikes in electricity.
