FAS initiated proceedings for setting high prices for abgas hydrochloric acid

The Federal Antimonopoly Service (FAS) has initiated proceedings for setting monopolistically high prices for abgas hydrochloric acid, the service reported on April 8.

Abgasic hydrochloric acid is used in the oil and gas, chemical and metallurgical industries. The agency clarified that the complaint of PJSC NK Rosneft was the basis.

The Service has initiated cases against JSC Caustic, LLC Nikohim, JSC HaloPolymer Perm, JSC HaloPolymer Kirovo-Chepetsk, PJSC Khimprom.

An analysis of the competitive situation in this product market has shown that the total share of enterprises is more than 70%. This indicates that organizations are in a dominant position.

"The FAS analyzed prices and costs, and calculated the profitability of companies selling abgas hydrochloric acid on the domestic market. The agency determined that the dynamics of expenses over the three years that are necessary for the production and sale of goods are disproportionate to the dynamics of prices for abgas hydrochloric acid," the service explained.

Setting and maintaining a monopolistically high price is prohibited by the Law on Protection of Competition. Based on the data collected and the analysis carried out, the Federal Antimonopoly Service of Russia initiated three cases against the companies for possible violations of antimonopoly legislation.

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Earlier, on April 7, the FAS asked manufacturers of polyvinyl chloride (PVC) for the reasons for the price changes. The press service clarified that the FAS conducts monthly monitoring of the production, sale and cost of petrochemical products. In order to prevent violations of the antimonopoly legislation, the antimonopoly authority sent letters to JSC Sayanskkhimplast, JSC BSK and JSC Caustic in order to exclude unjustified growth in PVC prices.