Italy's Landmark Antitrust Fines Shake Oil Industry

The Italian antitrust regulator has issued a total of over 936 million euros in fines to Eni, ExxonMobil-owned Esso, and four other companies for operating a cartel to manipulate biofuel component prices in the truck fuel market from 2020 to 2023.

Italy's antitrust watchdog has imposed substantial penalties on major oil corporations, accusing them of operating a cartel to restrict competition in the truck fuel market. Eni, alongside five other firms, faces a combined fine exceeding 936 million euros, marking a significant stance in regulating the sector.

The companies, including Eni, ExxonMobil-owned Esso, Ip, Q8, Saras, and Tamoil, were found guilty of artificially inflating the biofuel component of truck fuel. This component's price saw a dramatic surge, rising from approximately 20 euros per cubic metre in 2019 to around 60 euros in 2023.

The investigation, described as "complex" by the antitrust authority, was initiated following a whistleblower's alert. Fines varied across companies, with Eni receiving the largest at 336 million euros, while Saras was fined 44 million euros. Attempts to obtain comments from Eni and IP were unsuccessful.

(With inputs from agencies.)