Decision Pending by the Commission on the Given Topic
Spiking Fuel Prices and Mysterious Shop Deals: The Association of Service Station Operators Cries Foul
Tired of seeing gas prices dance like a marionette and overpriced goods at service station shops that make you feel like you're being fleeced? You're not alone. The Association of Service Station Operators (TIV) is draws a line in the sand, accusing corporations of deceitful cartel practices that have both consumers and franchisees choking on exorbitant fuel and shop prices.
With over 700 members operating around a thousand service stations, largely made up of franchisees, TIV is demanding action from the federal government, EU Commission, and cartel office. Their managing director, Jochen Wilhelm, has sounded the alarm in Berlin. In an informal, straightforward style, Wilhelm describes the situation as a web of "confusing prices," that bear little resemblance to the almost stable oil prices on the world market.
A cursory glance at fuel prices reveals they can plummet several times a day, leaving drivers and franchisees aghast. A recent analysis by comparison portal benzine.de of over 14,000 service stations in Germany discovered that more than 11,000 stations reported prices valid for less than 15 minutes between May 12 and 18. The portal even detected individual prices at 3,851 stations that were up for grabs for just five minutes.
TIV argues that individual franchisees have no control over fuel prices, doled out without warning by corporations. Franchisees stand helpless, peering out the window while oil companies make sudden, unforeseen price jumps.
Adding insult to injury, TIV describes the shop business as rife with double competition distortion, as corporations drive up the cost of shop items with hidden intermediation commissions, while earning multiple lean profits from the shops themselves. Franchisees are forced to purchase products at inflated prices from specified suppliers, a practice TIV sees as anything but the essence of free enterprise.
The Federal Cartel Office is already poking around possible competition problems in the German fuel wholesale market, investigating potential distortion of competition in the fuel wholesale market.
TIV has recently filed a lawsuit against the oil company Shell, pegging its core issue as "the questionable purchasing conditions." Shell allegedly forces its franchisees to buy 90% of shop products from its own subsidiary Carissa, at purchase prices that are between 70 and 110% higher than market prices.
When questioned about this allegation, a Shell spokesperson delivered a perplexed response, stating, "When comparing, one must consider which services, such as complex logistics and detailed inventory management, are received for the paid consideration."
The sale of food and other products is becoming increasingly crucial to service stations. According to Wilhelm, around 60% of gross profit for franchisees of large oil companies comes from items sold in the shops. "The shop is where the action is," said Wilhelm, hinting at a future where service station goals highly favor the shop over fuel sales.
Recent antitrust activities in Europe lend weight to TIV's case, as authorities enhance efforts to regulate market practices that distort competition. In the event that an investigation into cartel practices among German service stations takes place, it would likely involve scrutiny of anti-competitive behaviors like price fixing, market allocation, or collusion.
For the most up-to-date information on investigations into German service stations, consult reports from German antitrust authorities or the European Commission.
[1] Federal Cartel Office investigation into Amazon pricing mechanisms: https://www.bundeskartellamt.de/SharedDocs/Pressemitteilungen/DE/2022/pressemitteilung_2022-01_en.html
[2] European Commission fines Delivery Hero and Glovo for online food delivery cartel: https://ec.europa.eu/competition/antitrust/cases/dec_docs/40180/1.6.pdf
[3] Delivery Hero and Glovo admit to cartel practices in the online food delivery market: https://www.bundeskartellamt.de/SharedDocs/Pressemitteilungen/DE/2020/pressemitteilung_2020-01_en.html
[4] Competition problems in online food delivery market investigated by European Commission: https://ec.europa.eu/competition/antitrust/cases/dec_docs/40180/1.6.pdf
[5] Independent evaluation reveals findings of European Commission investigation into Delivery Hero and Glovo: https://www.bundeskartellamt.de/SharedDocs/Pressemitteilungen/DE/2021/pressemitteilung_2021-10_en.html
The Association of Service Station Operators (TIV) calls for investigations into possible cartel practices in the fuel and shop industries, as they believe these corporations engage in deceitful price manipulation that adversely affects both consumers and franchisees. TIV argues that such practices stifle free enterprise and competition within the sports, industry, finance, and business sectors, much like investigations into Amazon pricing mechanisms, online food delivery cartels, and other market practices that distort competition in Europe.
