Biodiesel group charges India’s OMCs of “cartel-like” behavior

India’s Competition Commission is looking into a possible cartel and anti-competitive activities among public sector oil marketing firms.  “The Competition Commission of India is of the view that there exists a prima facie case of anti-competitive activities by the oil marketing companies (OMCs) who appear to have formed a cartel and are offering uniform purchase price to bio-diesel manufacturers irrespective of their actual market value,” according to a letter to the Biodiesel Association of India from the office of the director general of the commission which has been directed to investigate the matter. Sandeep Chaturvedi, the president of the association, charged that state OMCs which enjoy an exclusive right to store, distribute and market biofuels, “are taking undue advantage of the policy and are instrumental in skewing the market.” He said that since 2009, biofuel prices have not changed. “The bio-fuel policy has provisions wherein there should be periodical revision of prices but these companies have formed a cartel and do not allow us to sell the fuel at a market-determined price,” Chaturvedi said. (June 29, 2011)