A PYMNTS Company

South Africa: Chevron attacked for ‘exclusionary conduct’

 |  December 2, 2014

The South African operations of oil conglomerate Chevron are currently the target of criticism by local fuel storage company Burgan Cape Terminals, say reports.

Burgan is slated to file an official complaint against Chevron, the company said Tuesday, accusing the company of harming competition by voting against plans to build a new storage terminal. According to Burgan, Chevron’s opposition to the plans is merely a tactic to hide its anticompetitive behavior.

Chevron reportedly claims the $59 million terminal would cause “rampant” fuel imports and the demise of local fuel output. Those effects would severely harm Chevron’s refinery, the company said.

But according to Burgan, “Chevron’s argument that the refinery will have to close is a red herring to hide its exclusionary conduct and block competition.” Burgan chief executive Mzwandile Mseleku added that South African regulations ensure that local production is prioritized over imports, “hence protecting the refinery.”

The company will lodge a complaint with the nation’s Competition Commission next week, he said.

Full content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.