Cape Town - South African regulators conducted dawn raids on Tuesday on five liquified petroleum gas (LPG) suppliers on suspicion of price fixing, the Competition Commission said in a statement.
“The Commission believes that the information that will be obtained from today's operation will enable the Commission to determine whether or not the firms have indeed engaged in collusive conduct,” commissioner Tembinkosi Bonakele said.
Bonakele said the searches on premises of LPG firms across the country were unrelated to an ongoing market related inquiry into the LPG sector launched last year. The Commission has concerns the sector exhibited features that prevent, distort or restrict competition.
Firms raided included African Oxygen Limited, Oryx Oil South Africa and the gas division of French oil major Total.
The firms are some of the biggest suppliers of LPG in Africa's most developed economy, which is looking to diversify its energy mix to include greater use of gas in homes and industry after suffering biting electricity shortages this year.
REUTERS