Peru: Regulator rejects intervening in fuel market

Jesus Espinoza, Technical Secretary for the Commission for the Defense of Free Competition, stated that competition regulator INDECOPI is not responsible for regulating the market prices of any product, including fuel, as any meddling is forbidden by law.

Mr. Espinoza added that INDECOPI will monitor the market, searching for competition violations such as price-fixing, although currently the agency’s focus is primarily on promoting competition. Mr. Espinoza explained that, in order for sanctions or other interventions are issued for price-fixing “it’s not enough ro observe a rise in prices, even when you have a duopoly.”

Mr. Espinoza praised the agency’s procedures, pointing out that their supervision and research allowed the agency to identify a years-long price-fixing ring in the tissue paper sector, as well as recent hits to national gas cartels. He added that constant monitoring had allowed INDECOPI to present several proposal before the competent authorities which would improve competition in several markets.

Full content: El Comercio

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