No 'hardcore cartel': Competition Tribunal dismisses case of alleged price fixing by gas companies | Business

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The Competition Tribunal has dismissed a case of alleged price fixing against five liquefied petroleum gas companies accused of flouting the law when fixing the deposit fee charged to first time purchasers of cylinders. | News24_Business

The Competition Tribunal has dismissed a case of alleged price fixing against five liquefied petroleum gas companies accused of flouting the law when fixing the deposit fee charged to first time purchasers of cylinders.

The Commission alleged that during South African Petroleum Industry Association meetings, Totalgaz Southern Africa, Oryx Oil South Africa, Easigas, Kayagas and African Oxygen concluded an agreement to increase the deposit fees on LPG cylinders for first-time buyers, in contravention of the Competition Act.

The LPG firms argued that their decision to adopt the same increase in the cylinder deposit fee was due to the"vertical relationship" between them as participants in the Cylinder Exchange Program . This refers to the nature of the relationship in the supply chain, and can be compared to horizontal relationships, or those between companies in the same level of a supply chain.

 

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