Albanian Court Strikes Down Oil Monopoly

Tirana | 28 July 2009 | Albania’s Constitutional Court has struck down a government decision that gave a virtual monopoly to local refiner ARMO for the production and sale of low-grade D2 diesel.

In its Monday ruling, the court upheld an appeal submitted by a syndicate of fuel importers, who complained that the decision that ARMO should be the only supplier of D2 diesel created a virtual monopoly.

Last year, ARMO, Albania’s previously state-controlled oil refinery, was bought for €128 million by a US and Swiss consortium headed by Anika Enterprise, a company controlled by Albanian businessman Rezart Taci.

Following the privatisation, the government restricted the import of high-sulphur D2 diesel by other importers, leaving ARMO as the sole supplier.

Prime Minister Sali Berisha claimed the decision was intended to protect Albania’s environment from the emissions problems caused by the low-grade fuel. Importers said that the move favoured Taci and ran his competitors out of business.

The court’s ruling allows the oil importers’ cartel to sue the Albanian government for reparations for their losses, which they claim reach as high as €180 million.

According to the association of oil importers, D2 diesels account for 75 per cent of Albania’s local fuel market.

However, it remains unclear whether the government will respect the ruling, despite the fact it is legally binding. Source: Balkaninsight

Short URL: http://www.albanianeconomy.com/news/?p=1944

Posted by admin on Jul 28 2009. Filed under Business, Economy, Politics, Top News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry