Analysis of the Competitive Environment in Motor Fuel Regional Market

The article is dedicated to monitoring the competitive environment in the retail motor fuel markets in order to establish a dominant position vertically integrated oil companies (VIOCs) in regional markets dictating pricing policy to its participants. The methodology is represented by the instructions for preparation of an analytical report on the competitive situation in the small-scale wholesale motor and diesel fuel markets based on the “Procedure for analysing the competitive situation in the product market” approved by the RF FAS Order as of April 28, 2010 No. 220, the concentration index, and the Herfindahl-Hirschman index. The authors conclude that in the context of collective dominance, sales volume of refined petroleum products in terms of value increasingly characterizes the proportion of an economic entity in the market. At that, the methodological guidelines for the preparation of an analytical report on the competitive environment in diesel fuel retail markets shall be supplemented by the correlation and determination indices, allowing evaluation of the closeness of the relationship for the level of profits, export-import operations, government influence on the market participants, and market concentration index.