Oil Refineries: Low sulfur diesel is not price-controlled.
Sources inform “Globes” that the Ministry of National Infrastructures is investigating allegations that Oil Refienries violated the Consumer Protection Law (5741-1981), by overcharging for low sulfur diesel sold to companies.
Ministry of National Infrastructures head of Economics Department Iris Zemach recently questioned under warning Oil Refineries general manager Yashar Ben-Mordechai and the director of trade and operations. Zemach will submit her findings to the State Prosecutor. Oil Refineries is suspected of earning millions of shekels a year from the overpricing.
The price of most of Oil Refineries’ products are controlled, including high sulfur diesel. The Ministry of National Infrastructures considers low sulfur diesel to be the same as high sulfur diesel, and alleges that Oil Refiners violated a price control order, and overcharged for its low sulfur products.
An Oil Refineries spokesman said in response, “The price for low sulfur diesel is not controlled. Low sulfur diesel is not similar to the existing price- controlled product. It is fundamentally different in its properties. Oil Refineries is convinced that the investigation will support the company’s position.”
Published by Globes [online] - www.globes.co.il - on May 8, 2003