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Mexico watchdog investigating LPG market

MEXICO CITY, February 23, 2018 – The Federal Economic Competition Commission (Cofece) is looking into the possibility of collusion among players to manipulate the LPG market, the authority announced in a press statement on Thursday.

 

Cofece opened the inquiry following a complaint filed last year by Mexico’s Energy Regulatory Commission, which oversees the domestic refined oil products, natural gas, LPG and electricity markets. According to the competition watchdog, it is specifically investigating “the possible realisation of agreements between competitors to manipulate prices, restrict or limit supply or demand, or divide or segment the market.”

Case DE-022-2017 can initially be investigated for 120 days, with the possibility of being extended up to four times for periods of 30-120 days.

The punishment for “absolute monopolistic practice” is a fine of up to 10% of the offender’s income, and individuals involved may be imprisoned for as many as 10 years.

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