A PYMNTS Company

Brazil: Petrobras and Shell employees arrested in price-fixing probe

By  |  August 7, 2018

Brazilian authorities have arrested eight executives from three of the country’s largest fuel distribution companies—Petrobras, Shell, and Ipiranga—for price fixing at service stations and preventing open competition.

A probe led to the arrest of three employees at Petrobras Distribuidora, two at Ipiranga, and three at Shell’s Raizen Combustiveis. These three companies control 70% of the country’s fuel distribution market.

The investigation was prompted by station owners reporting the scheme they were being forced into. The distribution firms controlled the margin the station owners would have by setting the final price to consumers. The firms said they operated in compliance with competition regulations, in which fuel prices are set by gas station owners.

Full Content: Kallanish Energy

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.