PRESS RELEASE

NGV price fixing in Metropolitan Lima and Callao

By
Friday, January 18, 2019

The Commission for the Defense of Free Competition of Indecopi (CLC) sanctioned, in the first administrative instance, 63 companies engaged in the sale of Natural Gas Vehicles (NGV) and 29 of its employees, for agreeing to increase their prices together. The cartel that operated in Lima and Callao, between July 2011 and May 2015, was fined with more than 459 million soles.

The infringement was detected by the Technical Secretariat of the Commission, thanks to the constant supervision of the market. Thus, in May 2015, a preliminary investigation was initiated which consisted of a series of inspections without prior notice to the companies under investigation, obtaining a copy of electronic mails and records that revealed secret price agreements between competing companies (price cartel) in force to date. of inspections.

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The evidence obtained during the investigation determined that this cartel operated secretly between 2011 and 2015, through coordination between officials and employees of various competing service stations, who agreed on the price they would charge or the increases they would make.

As a result of these anticompetitive actions, the cartel imposed on its customers price increases (overpricing) of up to 38% per m 3 of CNG, restricting competition in this market. The profit that the companies would have obtained in practice amounts to S / 152 675 916.44 (one hundred fifty-two million six hundred seventy-five thousand nine hundred sixteen and 44/100 soles).

The increase in the price affected the main NGV claimants who are taxi drivers, but it could also affect the users of the taxi services, as taxi drivers have transferred the increase to their users through higher prices.

The full statement is available here

This Indecopi release was published using an automatic translation system.