Italian authorities investigate road fuel providers over biofuel suspicions

The Italian Competition Authority has launched an investigation into alleged anti-competitive practices among major road fuel suppliers, affecting the biofuel element in road fuels, it said.

The companies involved are Eni, Esso, Ip, Iplom, Q8, Tamoil and Saras.

They are suspected of having "coordinated in determining the value of the bio component necessary to comply with obligations".

In Italy, gasoline typically contains up to 5% ethanol and diesel up to 7% biodiesel.

ExxonMobil told S&P Global Commodity Insights it was "cooperating fully with the Italian Competition Authority in connection with its visit to Esso Italiana's office in Rome yesterday," but considered it premature to comment further.

The other companies were not available to comment.

The value of the bio-component in fuels has risen from Eur20/cu m ($22/cu m) in 2019 to around Eur60/mt today, which has added about Eur2 billion to retail prices, the authority said.

That was a larger increase than elsewhere in Europe.

Platts, part of S&P Global, assessed European T2 ethanol at Eur763.50/cu m on July 19, down 36% on the year but up 14% from the same period in 2019.

European ethanol prices have largely trended upwards since 2019, lifted by energy volatility and rising mandates.

Platts assessed biodiesel FAME 0 (Renewable Energy Directive-compliant) FOB ARA barges at $1,325/mt July 19, up 18% from when the assessment first started Jan. 4, 2021.

The authority's officials carried out inspections at the offices of the named companies' offices and other entities thought to be in possession of information useful for the investigation July 19, it said. The probe followed a report received through the authority's whistle-blowing platform.