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EU fines oil hoses cartel 131 million euros

Business Materials 28 January 2009 15:13 (UTC +04:00)

The European Commission on Wednesday slapped a 131-million-euro (173-million-dollar) fine on five companies that contributed to higher petrol costs by fixing the price of marine hoses used to transfer crude oil to and from ships, reported dpa.

The five companies - Bridgestone, Dunlop Oil & Marine/Continental, Trelleborg, Parker ITR and Manuli, were found guilty of operating a marine hoses cartel between 1986 and 2007.

"For 20 years, this cartel added to the prices consumers paid for their oil deliveries," said EU Competition Commissioner Neelie Kroes.

Marine hoses are used to transport crude oil to and from ships for transportation from production sites. The European market for this product is worth about 32 million euros per year.

The biggest fines, 58.5 and 25.6 million euros respectively, went to those deemed to be the worst offenders - Japan's Bridgestone and Parker ITR, a US-Italian company.

The fine imposed on Italy's Manuli was reduced by 30 per cent because of its cooperation with the investigation, while Japan's Yokohama was entirely spared from a 14.4-million-euro fine for spilling the beans on the cartel.

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