WRITTEN QUESTION E-2149/00 by María Sornosa Martínez (PSE) and Luis Berenguer Fuster (PSE) to the Commission. Petrol in Spain ‐ market structure and the price of fuel.
Date: 2000-06-30
Institutions: European Parliament, Provisional data
Subjects: Spain, competence of the Member States, intra-EU trade, motor fuel, price increase, restriction on competition

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Whether Council Directive 76/464/EEC and the relevant (cid:145)daughter(cid:146) directives (2) apply in this case could
not be identified with the available information. In principle, discharges of list I substances have to be
authorised and relevant list II substances have to be identified by the national authorities. For relevant list II
substances, the Member States are required to establish pollution reduction programmes including the
setting of quality objectives in the river.

The Commission is currently examining the measures adopted by the Spanish authorities and commu-
nicated by them following the Court(cid:146)s judgement. One of these measures that should be mentioned is the
adoption of the watershed hydrological plans for the inland waters concerned. Incidentally, Law 29/1985
on Water has been substantially amended in this regard by Law 46/1999. The Spanish authorities have
also just adopted Royal Decree 995/2000 of 2 June,
(cid:145)por el que se fijan objetivos de calidad para
determinadas sustancias contaminantes(cid:146) (laying down quality objectives for certain dangerous substances).
The Commission hopes that these new rules will bring a solution to individual problems of water pollution
such as the subject of this written question.

As regards, secondly, Council Directive 91/271/EEC of 21 May 1991 concerning urban waste-water
treatment (3), it should be pointed out that agglomerations of more than 15 000 population equivalent
(p.e. (cid:129) a unit of measurement of organic pollution representing the average pollution produced per person
per day) which discharge their urban waste water into the River Belcaire must be equipped with collecting
and secondary (i.e. biological) treatment systems at the latest by 31 December 2000. The time limit is
31 December 2005 for agglomerations of between 2 000 and 15 000 p.e. The Commission will verify
compliance with these obligations from the beginning of next year in the case of the largest agglomera-
tions.

The Commission as guardian of the Treaties and using the instruments at its disposal will take the
necessary measures to ensure that Community law is complied with in the case in point.

Judgment of 25.11.1998. Case No C-214/96.

(1)
(2) Council Directive 82/176/EEC of 22 March 1982 on limit values and quality objectives for mercury discharges by
the chlor-alkali electrolysis industry (OJ L 81, 27.3.1982). Council Directive 83/513/EEC of 26 September 1983 on
limit values and quality objectives for cadmium discharges (OJ L 291, 24.10.1983). Council Directive 84/156/EEC
of 8 March 1984 on limit values and quality objectives for mercury discharges by sectors other than the chlor-alkali
electrolysis industry (OJ L 74, 17.3.1984). Council Directive 84/491/EEC of 9 October 1984 on limit values and
quality objectives for discharges of hexachlorocyclohexane (OJ L 274, 17.10.1984). Council Directive 86/280/EEC
of 12 June 1986 on limit values and quality objectives for discharges of certain dangerous substances included on
List I of the Annex to Directive 76/464/EEC (OJ L 181, 4.7.1986).

(3) OJ L 135, 30.5.1991.

(2001/C 103 E/079)

WRITTEN QUESTION E-2149/00

by Mar(cid:237)a Sornosa Mart(cid:237)nez (PSE) and Luis Berenguer Fuster (PSE) to the Commission

(30 June 2000)

Subject: Petrol in Spain (cid:129) market structure and the price of fuel

The structure of the fuel sector in Spain has oligopolistic characteristics. The top three companies, for
example, (Repsol, Cepsa and BP) between them have a combined market share of almost 85 %. In addition
to this, long-term contracts are agreed between suppliers and distributors which use legal fictions such as
the establishment of surface rights and the sale of land with a repurchase agreement to exceed the time
limit of ten years for exclusive purchase contracts. This, combined with the structure of the market and
obstacles to the construction of petrol stations in the form of
legislation on planning and road
infrastructure, results in a closed market with barriers to entry. In these circumstances, the ground is ripe

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for price fixing agreements, and allegations of vertical price-fixing are commonplace. There is certainly
little competition in the fuel sector, and there are grounds for the suspicion that some of the practices used
are in breach of Articles 81 and 82 of the Treaty.

In recent months the price of fuel in Spain has increased disproportionately, to the point where it is now
the highest in Europe in relation to purchasing power. In view of this situation, the Vice-President of the
Commission indicated to the Spanish press that the Commission intended to open an investigation,
although these reports were immediately denied.

Is the Commission investigating whether the increases in fuel prices in Spain constitute collusive practices?

In the Commission(cid:146)s opinion, is the fuel market in Spain sufficiently competitive?

What measures should be taken to increase competition in this sector?

Answer given by Mr Monti on behalf of the Commission

(2 August 2000)

With regard to the first part of the question, the Commission would inform the Honourable Members that
the Spanish competition authorities are currently investigating agreements or practices in the fuel
distribution sector which could be contrary to Community and Spanish competition rules. In accordance
with the principles laid down in the Commission notice on cooperation between national authorities and
the Commission in handling cases falling within the scope of the Article 81 and 82 of the EC Treaty
(former Articles 85 and 86) (1), national competition authorities generally deal with cases where presumed
competition restrictions impact mainly on their country.

The Commission has recently adopted a new policy on vertical restrictions which will produce changes in
the petroleum products sector (2). The most significant change will be that the maximum duration of
exclusivity agreements between distributors and service stations will be reduced from 10 to 5 years, if
firms wish to take advantage of an exemption by category under this type of agreement. A beneficial effect
of the change will be that retailers of petroleum products will be able to change suppliers more often on
expiry of the five-year contract and new operators will be able to enter the market. The Commission will
ensure that this new policy is applied properly.

With regard to the increase in the price of fuel in Spain, the Commission would refer the Honourable
Members its answer to Written Question E-1881/00 by Mr Kn(cid:246)rr Borr(cid:224)s (3).

With regard to the second and third parts to the question, the Commission would point out that it cannot
express any view on the level of competitiveness of the fuel distribution sector in Spain or on the measures
which, where appropriate could help increase competition in the sector. That is a matter for the Spanish
authorities, without prejudice to Article 98 (former Article 102a) et seq of the EC Treaty. Thus, the
Commission would refer the Honourable Members to the Commission recommendation on the broad
guidelines of economic policies for the year 2000, adopted on 11 April 2000 (4).

The Commission would assure the Honourable Members that it will continue to see that Community
competition law and internal market regulations are properly applied to this sector.

(1) OJ C 313, 15.10.1997.
(2) Commission Regulation (EC) No 2790/1999 of 22 December 1999 on the application of Article 81(3) of the Treaty

to categories of vertical agreements and concerted practices (OJ L 336, 29.12.1999).

(3) OJ C 72 E, 6.3.2001, p. 140.
(4) COM(2000) 214 final.