Spain’s competition authority, the CNMC, has fined several companies within the Repsol Group a total of €20.5 million for abusing a dominant position through an unlawful margin squeeze strategy in the automotive fuels market. The authority has also barred certain Repsol entities from participating in public fuel supply tenders for six months.
The decision concerns Repsol Comercial de Productos Petrolíferos, Solred, and Campsa Estaciones de Servicio, as well as their parent companies, Repsol Customer Centric and Repsol. According to the CNMC, the infringement constitutes a very serious violation of Spanish and EU competition law.
Dominant Position and Special Responsibility
During the infringement period, Repsol held a dominant position in the national wholesale market for automotive fuels supplied to service stations. Under competition law, companies in a dominant position are subject to a heightened responsibility not to restrict competition.
The CNMC found that in 2022—against the backdrop of rising fuel prices following Russia’s invasion of Ukraine—Repsol increased wholesale prices of Automotive Gas Oil (Diesel A) charged to competing service stations. At the same time, it launched additional discount campaigns at Repsol-branded stations for professional customers, particularly transport operators.
This combination of upstream price increases and downstream discounts resulted in a margin squeeze that prevented independent and low-cost fuel stations from competing effectively, particularly in supplying diesel to professional customers.
Impact on Low-Cost Competitors
The authority concluded that the conduct took place between April and December 2022 and coincided with an exceptional surge in fuel prices. During part of this period, the price of Diesel A exceeded gasoline prices in Spain for the first time.
According to the CNMC, the strategy significantly reduced the sales volumes of diesel fuel at certain independent service stations, while Repsol increased both its sales and market share. The authority considered the conduct particularly serious because it targeted low-cost service stations, which play a key role in fostering competition, especially in high-demand areas, border regions, and major road transport corridors.
Investigation and Legal Basis
The case originated from complaints submitted by industry associations, which prompted CNMC inspections at the premises of several hydrocarbon operators in late 2022. In December 2023, the CNMC formally opened infringement proceedings against Repsol for a potential abuse of dominance.
The margin squeeze practice was found to infringe Article 2 of Spain’s Competition Act and Article 102 of the Treaty on the Functioning of the European Union, both of which prohibit dominant firms from engaging in exclusionary conduct that restricts competition.
Sanctions and Next Steps
In addition to the €20.5 million fine, the CNMC imposed a six-month ban on Repsol entities Campsa Estaciones de Servicio, Solred, and Repsol Comercial de Productos Petrolíferos from participating in public tenders for the supply of Diesel A for automotive use.
The companies may challenge the decision before Spain’s National High Court within two months of notification.
The ruling adds to growing scrutiny of pricing strategies in energy markets during periods of exceptional volatility and reinforces the obligations placed on dominant firms to ensure that competitive conditions are not distorted.