Italian Watchdog Fines Oil Giants €936 Million for Fuel Price Cartel

Key Takeaways

• Record Fines: The Italian Competition Authority fined six major oil companies a combined €936.7 million for colluding on fuel prices.
• Whistleblower Trigger: The investigation began after a whistleblower complaint exposed the cartel.
• Cartel Mechanics: Companies coordinated the value of the bio component in fuel, raising it from €20/m³ in 2019 to €60/m³ by 2023.
• Main Players: Eni (€336m), Esso (€129m), Ip (€163m), Q8 (€173m), Saras (€44m), and Tamoil (€91m) received penalties; Iplom and Repsol were cleared.
• Market Impact: The scheme distorted Italy’s motor fuel market, inflating costs for consumers through coordinated price hikes.

Deep Dive

Italy’s competition watchdog has slapped some of the country’s biggest oil companies with fines totaling more than €936 million after uncovering a cartel that rigged the price of fuel components for over three years.

The Italian Competition Authority announced on September 26 that Eni, Esso, Ip, Q8, Saras and Tamoil colluded to coordinate the value of the “bio component” included in fuel prices, inflating costs for consumers. The cartel, which began in January 2020 and lasted until June 2023, was exposed after a whistleblower’s complaint triggered the investigation.

The fines imposed on the companies amount to €936,659,087 in total. Among the penalties:

• Eni: €336,214,660
• Esso: €129,363,561
• Ip: €163,669,804
• Q8: €172,592,363
• Saras: €43,788,944
• Tamoil: €91,029,755

Iplom and Repsol, though initially included in the probe, were ultimately cleared of wrongdoing.

How the Cartel Worked

The Authority found that the companies coordinated to artificially set the bio component price, which had been introduced under national regulations as part of fuel blending obligations. The price of this component rose from roughly €20 per cubic meter in 2019 to around €60 per cubic meter by 2023.

Investigators said the companies exchanged information directly and indirectly, allowing for parallel price hikes that largely coincided across the sector. Industry publication Staffetta Quotidiana also played a role in the scheme, as the exact bio component values were published in its pages, often based on data sent by Eni itself.

The Authority concluded that these practices restricted competition in Italy’s motor fuel market, one of the most critical consumer sectors. By coordinating on a key price component, the companies undermined market dynamics and transparency, effectively inflating costs passed down the supply chain.

The decision marks one of the largest competition fines ever imposed in Italy’s energy sector and underscores regulators’ willingness to act on whistleblower disclosures.

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