Oil firms guilty of price fix

Three more home heating oil companies pleaded guilty yesterday to being part of a cartel which fixed the price of home heating…

Three more home heating oil companies pleaded guilty yesterday to being part of a cartel which fixed the price of home heating oil in the west, bringing to 10 the number of companies to be convicted by the courts to date as a result of an investigation carried out by the Competition Authority.

A number of individuals associated with the oil distribution companies have also been convicted.

Gort Oil Co Ltd, based in the south Galway village of Gort, yesterday admitted before Galway Circuit Criminal Court that it was part of a cartel fixing the price of home heating oil in Galway between January 2001 and February of 2002.

Competition Authority solicitor David McFadden told the court that, in June 2001, the authority received information that a cartel was operating in Galway which involved a number oil distribution companies.

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It emerged during the investigation that a number of oil distribution companies who were part of the Connacht Oil Promotion Federation (COPF) had entered into an agreement to fix the price of home heating oil.

The involvement of Gort Oil Co Ltd only came to light late in the investigation when a employee of the company, Joe Mulcair, eventually came forward and gave evidence. He had been employed at the time as the sole truck driver for Gort Oil Co. Ltd and he had represented the company at five COPF meetings at which the price of home heating oil was fixed.

Paul McGettigan BL, for Gort Oil, told Judge Raymond Groarke that the company had assisted in the investigation and had co-operated fully. Judge Groarke said he would treat the company in the same way as others which had pleaded guilty to the same charge and he imposed a fine of €7,500.

Two other companies, Cloonan Oil Ltd, of Athenry and Ruby Oil Roscommon Ltd also admitted the same charge at yesterday's court hearing. Sentencing in both cases was adjourned to May 18th.