(Ecofin Agency) - South African regulators on suspicion of price fixing raided firms of five of the biggest suppliers of Liquified Petroleum Gas (LPG) in the country.
The firms raided include African Oxygen Limited, Oryx Oil South Africa and the gas division of Total. “The commission believes that the information that will be obtained from today’s operation will enable the competition commission to determine whether or not the firms have indeed engaged in collusive conduct,” Commissioner Tembinkosi Bonakele told Reuters.
The commissioner stated that the raids on LPG firms throughout the country were not in relation to an ongoing market inquiry into the sector commissioned last year. He said the commission is concerned that the LPG sector is demonstrating features preventing or restricting competition.
South Africa after suffering from shortage of Electricity is however looking towards diversifying its energy mix by including higher usage of gas in homes and industries