AFCCP says fuel companies do not have right to increase prices or create artificial scarcity

The Authority for Fair Competition and Consumer Protection (AFCCP) said that fuel importing companies do not have the right to increase prices arbitrarily or create artificial scarcity without approval from the public-private pricing commission.

AFCCP held a press conference to discuss the price of petroleum fuel products and its 2017 operations.

“Cabinet regulates and supervises strategic products and commodities in order to prevent any issues regarding supply to the public. Certain fuel companies are being criticized for creating artificial scarcities. We are investigating the companies that have done so in accordance to the Law on Fair Competition. AFCCP will determine why supplies were deliberately limited,” said Head of AFCCP B.Lkhagva.

“Fuel companies do not have the right to increase prices or create artificial scarcities,” B.Lkhagva added.

AFCCP added that it will not tolerate any companies that have increased their prices or created scarcities when a decision regarding pricing has not been made by the Fuel Pricing Committee. Representatives from several of the named companies met with AFCCP last week. AFCCP said that it hopes there are no more limits on supply in the future.

Exercising the full extent of its power, AFCCP has sent recommendations to several government agencies and private companies in order to prevent further artificial scarcities.