This operator has repeatedly refused to unload gas for operators which have invested in liquid gas storage capacities providing illegal and unreasonable excuses, says the Competition Authority
TIRANA, April, 30 – Albania’s Competition Authority has fined a concession company responsible for the maritime fuel load/unload operations in the Porto Romano area, Durres, because of abusing its dominant position and limiting competition in the liquid gas market. The decision to fine Romano Port company 6.7 million lek (Euro 47,000), 2.35 percent of its annual turnover follows an eight month investigation after complaints by two operators of not being offered the unload service from the concessionaire although possessing all the necessary documentation.
In its decision, the Competition Authority says the concessionaire unilaterally asked two companies, Mare Oil and Prima Gas Albania for extra documents to make possible the unload of liquid gas from their ships.
“In conclusion, the Competition Commission has proved that the Romano Port Sha holds a dominant position in the maritime loan/unload liquid gas market. This operator has repeatedly refused to unload gas for operators which have invested in liquid gas storage capacities providing illegal and unreasonable excuses. The refusal is related to this operator’s direct economic interests in the storage and wholesale trade of liquid gas, limiting competition in these markets.”
Since the launch of the probe in August 2011, the Authority suspected the decision might have been taken to favour other companies, violating competition rules and risking a possible monopoly situation.
Gas prices in Albania have registered significant increases following rising prices in international markets, the depreciation of lek against the US dollar and the difficulties in customs clearance in ports.
Prices of liquid gas, which is used as a cheaper alternative to cooking and heating, have increased by 10 lek to 100 lek/litre over the past year.
Hundreds of retail operators sell liquid gas bottled in 10-15 kg cylinders even in unlicensed highly inhabited areas.
Albania’s Constitutional Court has recently dismissed as unfounded claims by the Association of Liquid Gas Importers and Traders opposing the compulsory installation of cash registers under an ordinance by the Finance Minister back in May 2010. In a decision dated March 27, 2012, the Constitutional Court rejected as unfounded claims that the companies’ economic freedoms had been violated.
The Association claimed that economic freedom guaranteed by Constitution had been violated because the obligation to purchase, install, maintain and periodically update fiscal equipment for liquid gas importers and wholesale traders severely affected the budget of these companies.
On the other hand, government claimed that economic freedom did not mean independence from each state control.
The cash register issue caused problems with the distribution of liquid gas in early 2011, but the situation normalized following the installation of cash registers even by the Petrolifera oil and gas terminal in Vlora, southern Albania.
