Expected Developments And Competition Law Considerations In The Light Of Fuel Market Liberalisation

• Published date: 14 October 2020
• Subject Matter: Anti-trust/Competition Law, Energy and Natural Resources, Antitrust, EU Competition , Energy Law, Oil, Gas & Electricity
• Law Firm: Schoenherr Attorneys at Law
• Author: Ms Eva 'kufca, Lea Avsenik and Maks David Osojnik

On 23 September 2020, the Slovenian government decided that price control measures in the field of fuel products are no longer necessary, meaning that the retail fuel market will be fully liberalised from October 2020.

Slovenia was the last EU Member State in which the government administered retail fuel prices. The first steps towards full liberalisation were taken back in 2016, when the government liberalised the prices of premium petroleum and heating oil, while regular petrol and diesel remained subject to administered prices.

Expected market developments

The Ministry of Economy is convinced that now is the best time for such a measure, since global oil prices are low and raising trading margins will have a minimal effect on raising retail prices.

Expected developments:

• the entry of new discount fuel suppliers, especially in the parking areas of shopping centres;
• the entry of new fuel suppliers on the market within 10 years;
• fuel companies will now be able to adapt to market conditions and respond to prices in neighbouring countries;
• no (significant) increase in margins and consequent increase in fuel prices due to the entry of new bidders;
• margins are expected to reach a level comparable to other EU Member States within five years following the liberalisation;
• after full deregulation, it is expected that fuel prices on motorways will continue to be higher, while competition prices in other areas will remain lower.

Competition law considerations

Following deregulation, fair competition in the fuel market shall be ensured through the application of Articles 101 and 102 of the Treaty on the Functioning of the European Union ("TFEU") and its Slovenian equivalents Articles 6 and 9 of the Slovenian Prevention of Restriction of Competition Act ("ZPOmK-1"), which prohibit anti-competitive practices and abuse of dominance in the market.

Generally, any agreements or concerted practices aimed at or having the effect of preventing, restricting or distorting competition in the...