STATE COMMISSION FOR PROTECTION OF ECONOMIC COMPETITION INITIATES PROCEEDINGS IN GASOLINE MARKET

Noyan Tapan
June 15, 2009

YEREVAN, JUNE 15, NOYAN TAPAN. At the 15 special sitting, Armenia’s
State Commission for the Protection of Economic Competition initiated
proceedings in the gasoline market. According to a monitoring conducted
by commission experts, City Petrol Service company, which has a
dominating position in market, has raised the sale prices of gasoline
for the third time in the past six weeks, each time increasing prices
by 20 drams. As a result the price of "premium" gasoline has reached
370 drams (about one US dollar). At the same time, expectations of
further rise in prices have arisen in the market.

It should be mentioned that on June 10 City Petrol Service company
informed the Commission that it ceased operating on April 1, and
since April a new company – City Petrol Group LLC has been engaged
in the import and sale of gasoline and diesel fuel. Whereas, City
Petrol Service was announced the winner of the Armenian government’s
state purchase tender for supplying gasoline in the 2nd quarter of
2009 and it has continued its activities.

In the words of the Commission’s spokeswoman Armine Udumian, Flash –
another company with a dominating position in the market – has not
changed sale prices of gasoline now and, by preliminary estimates of
the Commission’s experts, the increase in its prices was in line with
developments in international market. The examination is underway.