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AFCA publishes investigation report on filling station market in Lungau: more transparency leads to lower prices

From April 2023 onwards, the Austrian Federal Competition Authority (AFCA) has received a number of complaints about fuel prices in Lungau (Salzburg province). The AFCA has looked into these complaints, carrying out an in-depth analysis of the market.

Investigations

Following an initial estimation of the facts of the case, the AFCA sent requests for information to filling station operators in Lungau and neighbouring districts, doing so on two occasions. Its subsequent analysis work focused on the following points of interest:

  • Market position and market behaviour of the filling station operators in Lungau and of the fuel suppliers
  • Profitability comparison of fuel retail in Lungau and neighbouring districts.

Results

No dominant position held by filling stations in Lungau

The AFCA could not find any evidence of dominance, either in the retail or in the wholesale (i.e. procurement) market. The retail market shares are below the legal threshold of 30%, except in some isolated cases. No fuel supplier provides more than 30% of the overall quantities delivered in Lungau. In addition, there are numerous alternatives available in the procurement market.

Absence of higher profitability: lower sales mean higher share of fixed costs

Regarding the procurement of diesel and petrol, the AFCA initially found that retail prices in Lungau were marginally higher than those in neighbouring districts. This was, however, due to the fact that some Lungau filling stations procure their fuel, and diesel in particular, via other filling stations in Lungau and not through wholesalers or from the refinery directly.

Filling stations in Lungau charge higher prices per litre than those in the comparison group but this was not found to be associated with higher profitability. One major reason for higher prices is the significantly lower quantities of fuel sold in Lungau (20-35% less than in the comparison districts), which results in a higher share of fixed costs (approximately 3-4 cents per litre).

There is price competition, which is generally good for consumers, but fixed costs are very high, unfortunately,” noted Director General Natalie Harsdorf.

Reporting of fuel prices leads to lower prices

During the course of its investigations, the AFCA found that a comparably cheap diesel filling station had not reported its prices to the E-Control price transparency database, a failing that was highlighted by the AFCA. The filling station in question resumed reporting its prices as of the second half of 2023, when investigations were still ongoing. Consequently, average diesel prices in Lungau dropped noticeably compared with neighbouring districts, while the actual number of prices being reported rose significantly.

The AFCA also found that at least three additional filling station operators in Lungau had not met their reporting obligation pursuant to the Price Transparency Act and the Price Transparency Ordinance. In the capacity of competent administrative penal authority, the District Commission of Tamsweg was informed accordingly.

“The mere fact that a cheap filling station became visible in the diesel retail market was enough to slash the 'Lungau markup' from November 2023 onwards. This shows just how important transparency is for consumers, allowing them to make informed purchase decisions,“ explained Director General Natalie Harsdorf.

As at 25 March 2025, the E-Control price transparency database listed filling stations in Lungau that were selling diesel for a cheaper price than in neighbouring districts.

The AFCA recommends checking E-Control’s road fuel calculator on a regular basis: www.spritpreisrechner.at

Higher fixed costs

In conclusion, there is no dominance in this market, and abuse of a dominant market position has been ruled out. Furthermore, investigations did not find any evidence of cartel agreements. The lower quantities sold in Lungau filling stations mean that contribution margins to cover fixed costs are higher, which might in turn explain higher prices at the pump. The AFCA may resume investigations if new evidence is found.

It is important that filling stations report their prices to E-Control’s price transparency database. The AFCA will continue to observe compliance with this obligation.

 

Investigation report on filling station market in Lungau, March 2025 (in German)