Fuel sales at motorway petrol stations - Tank & Rast’s new award model does not violate competition law

The Bundeskartellamt has no serious competition concerns about plans by Tank & Rast GmbH, Bonn for the award of fuel supply and distribution licences for motorway petrol stations for the coming five years (“2023 award model”).

Andreas Mundt, President of the Bundeskartellamt: “In the 1990s, Tank & Rast took over the management of most of the German motorway petrol stations based on long-term concessions awarded by the government. Tank & Rast awards approx. 90 per cent of the licences for the supply and distribution of fuel to these petrol stations to oil companies. The company has asked us to assess whether the award model planned for the coming five years is compatible with competition law. However, there were no indications that the model violates competition law. The modifications made to the award model at least provide the oil companies with a certain incentive to increase sales by lowering their prices. However, it will also still be worth comparing the prices in future with the information provided by the Market Transparency Unit for Fuels and choosing petrol stations which offer cheaper alternatives. Currently petrol and diesel on the motorway are up to 20 cents more expensive than at off-motorway petrol stations.”

As these licences were originally exclusively awarded based on a quota model in proportion to the market shares held by the oil companies in the off-motorway petrol station business, the Bundeskartellamt opened up this system to competition in 2011 (see decision of 14 January 2011(in German)). As a result, from 2013 only a maximum of 65 per cent of the licences were awarded according to the quota model and since 2018 only 49 per cent for the five-year period. The other distribution licences not held by Tank & Rast itself were auctioned. Since then the award model has taken more account of the interests of the small and medium-sized oil companies.

As in the previous award period, 41 per cent of the licences for the sale and distribution of fuel to the motorway petrol stations operated by Tank & Rast will also be auctioned for the five-year period from 2023. 49 per cent of the licences will continue to be awarded according to the quota. Tank & Rast has adjusted its bases for calculating the level of fees for the coming award period. These modifications will result in a greater decline than previously in the average fee that the oil companies pay Tank & Rast as the volume of sales increases. This will increase the incentive for oil companies to expand their volume of sales at the motorway petrol stations. The model also provides for contractual arrangements in the event of an unexpected decline in sales due to a pandemic.

The specific arrangements for the award of the distribution licences do not have to be officially approved by the Bundeskartellamt. Tank & Rast GmbH designs its award model based on the company's own assessment of its compliance with competition law. However, due to the significance of the award for the industry, the Bundeskartellamt discussed the arrangements of the award process and the relevant competition law criteria with stakeholders in the sector as part of a consultation, as it did for previous award periods. Based on the comments received in response to the consultation, Tank & Rast made further modifications to the planned award model. Among other things, it is now ensured that the level of fees for the distribution licences awarded according to the quota will not exceed the average fee charged for the auction-based award. For the first time ever e-fuels will also be included in the award procedure