MercoPress. South Atlantic News Agency

Europe fines nine oil companies for the “paraffin mafia”

The European Commission fined on Wednesday nine petrochemical companies a total of 676 million Euros for forming a “paraffin mafia” to fix prices and carve up markets for wax.

roducts affected by this 'paraffin mafia' cartel, with all that implies in terms of paying over the odds, higher costs and economic damage" the EU competition commissioner, Neelie Kroes, said. Paraffin waxes are used in a wide range of products like candles, paper cups and plates, the wax coating of cheese, chemicals, tires and chewing gum. Of the total fine the largest share was imposed on Sasol from South Africa and Germany. The EU official described Sasol as the leader of the illegal cartel, an official statement said. "The moves by the companies were a serious infringement of EU treaty antitrust rules, compounded by the duration of the cartel" added Kroes. Shell escaped a potential fine of 96 million Euros because it blew the whistle first to the EU competition authorities. However Sasol, the world's biggest maker of motor fuel from coal, said it expected to appeal the ruling. The fine ranked fourth among fines imposed by EU regulators on a sector, topped only by the record 992 million Euros on elevator companies last year; 790.5 million on makers of vitamins in 2001 and 750.5 million on manufacturers of gas-insulated switch gear in 2007. The other companies fined were France's Total; Exxon Mobil; RWE; Italy's ENI; Hansen & Rosenthal; Spain's Repsol and Tudapetrol. The commission said the cartel activity occurred from 1992 to 2005, when it began investigating with raids on petrochemicals companies prompted by an application from Shell for leniency in return for information.