Petrol Stations Face Legal Action from Competition Commission

Petrol stations involved in an eight-day strike could face legal action by the Cyprus Commission for the Protection of Competition (CPC), said the commission's president Costakis Christoforou speaking to CyprusNewsReport.com

"It is a breach if someone refuses to supply petroleum. We have alerted all parties concerned. I have met with POVEK's committee twice and they got the message," said Christoforou, going on to say that it is a big problem if companies act against the basic principles of competition law.

However, he is optimistic that a solution to the strike will be reached because POVEK understands the CPC's position, he said.

Most of the 280 petrol stations on the island have been on strike since Tuesday in the wake of a government order capping retail price. Stations that are wholly owned by petrol wholesalers have remained open, mindful of the possible threat of fines imposed for the non-supply of petroleum.

On Monday, the ministry of commerce issued an unprecedented order capping petrol retail prices for 95-octane at 95 cents per litre, and 97 cents per litre for 98-octane petrol (VAT-inclusive). Diesel prices are set at 87.5 cents per litre. The move is the latest in an ongoing battle between the government and petroleum supply companies which last year saw a 43 million euro fine imposed on petrol companies for price fixing.