The Swedish Competition Authority’s fuel analysis
During the next two years, the Swedish Competition Authority will, among other things:
Study whether there has been any change in pricing behavior on the fuel market as a result of changes in the global situation.
Update knowledge of the market structure in the fuel market and, if necessary, submit proposals for measures to promote competition.
Investigate the function of the recommended prices and possible market effects.
Investigate the competitive effects of algorithmic pricing tools.
Review the design of the discount agreements for each customer group and how the design affects the competition between the companies at central level.
Investigate the effects of collecting real-time prices to strengthen the relative position of private customers in relation to the fuel companies.
Collaborate with other competition authorities on experiences with measures for more effective competition.
The Swedish Competition Authority has been commissioned by the government to analyze competition in the fuel sector and follow market developments for two years.
In particular, the agency must “analyze price formation in the market close to consumers, highlight areas where we believe competition can be improved and submit proposals for competition-promoting measures,” the authority writes in a press release.
Competition in times of crisis
In addition, at the beginning of 2023, the Swedish Competition Authority will analyze competition in times of crisis in various sectors. First up is fuel.
According to the Swedish Competition Authority, it is especially important during times of crisis to maintain effective competition between companies, as it can promote the purchasing power of companies and consumers.
“A question that is relevant to highlight in the in-depth analyzes going forward is whether a lack of competition may have contributed to the prices reaching such levels as we now see”.
Price transparency
The Swedish Competition Authority emphasizes that the Swedish petrol and diesel market is characterized by high price transparency – which can be beneficial for the customer when comparing the companies’ offers.
But there is room for improvement. There is a lack of tools to be able to compare the actual pump price in advance. Such a measure could benefit competition, according to the authority.
The Swedish Competition Authority nevertheless points out that there are risks with high transparency: it can facilitate parallel behavior in pricing between competitors.