Petrobras, Shell firms investigated in Brazil

RIO DE JANEIRO, August 1, 2018 – Three of Brazil’s largest fuel distributors are being probed by local authorities for retail price fixing, international media reported on Tuesday.

The companies under investigation are NOC subsidiary Petrobras Distribuidora, Shell joint venture company Raizen, and Ipiranga, which is part of local energy conglomerate Ultrapar. Together, they control nearly 70% of fuel distribution in Brazil.

According to Brazilian law, petrol station owners should be able to freely set prices; however, local police say that the fuel distributors were able to control pricing through individuals employed to monitor and document retail station prices in the city of Curitiba.

Eight arrest warrants and 12 search and seizure warrants targeting the companies’ sales and management teams have been issued in Paraná state as part of the year-long investigation called Operation Controlled Margin.

All three companies have issued statements denying the charges and maintaining that business has been conducted in compliance with Brazilian law.

According to local media, those arrested in the operation could be charged with organised crime and abuse of economic power, and serve two to 13 years in prison if found guilty.

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