Home Heating Oil Cartel
- Open date:1 January 2003
- Close date:1 January 2012
- Publication date:1 January 2012
- Relevant legal provision:Section 4/Article 101
- Status details:Closed
- Outcome:Conviction
- Procedure:Criminal
Outcome of investigation
In a period spanning 11 years and concluding in 2012, the Director of Public Prosecutions successfully secured 18 separate convictions against 10 companies and 8 individuals. This case achieved a historic European and Irish precedent; it was the first ever jury conviction for a price fixing cartel.
The case
In June 2001, the Competition Authority received an anonymous complaint that home heating oil companies across the West of Ireland had together decided to increase their margin on the retail price of kerosene and gas oil in a price fixing agreement. Following a Competition Authority investigation, illegal cartel activity was found to have occurred between early 2001 and the first quarter of 2002.
In 2003 the Competition Authority sent its file to the Director of Public Prosecutions (‘DPP’) for decision. In 2004, the DPP initiated criminal proceedings against 24 individuals and companies charged in relation to fixing retail prices of home heating oil. All 24 cases were sent forward for trial on indictment to the Circuit Court. A nolle prosequi was entered in the case of 6 of the 24 cases. Proceedings went ahead against the other 18 cases, spanning a period from 2004 to 2012.
Two precedents were set:
- The first Jury convictions for price fixing in Europe and Ireland.
- In one case, DPP v Pat Hegarty, an important precedent was set following the referral of a question of law by the Circuit Court to the Supreme Court. The Supreme Court found that a formal conviction does not have to be recorded against the company in order to convict an employee of that company who is accused of the cartel offence. The finding that an employee can be convicted before the company has been convicted has subsequently had a wider application beyond the sphere of competition law.
Convictions
| Defendant | Status | Date Sentenced | Result |
|---|---|---|---|
| Pat Hegarty | Found guilty by a jury in Galway District Court (1 May 2012) | 03/05/2012 | 2 years in jail (suspended) and €30,000 fine |
| Fenmac Oil & Transport | Pleaded guilty in Galway Circuit Criminal Court (21 March 2006) | 21/03/2007 | €7,500 fine |
| Corrib Oil | Guilty plea entered on 2 November 2006. Convicted on 23 January 2007. | 23/01/2007 | €15,000 fine |
| Eugene Dalton Snr | Guilty plea entered on 2 October 2006. Convicted 23 January 2007. | 23/01/2007 | €10,000 fine |
| Cloonan Oil | Pleaded guilty in Galway Circuit Criminal Court (25 April 2006) | 18/05/2006 | €12,500 fine |
| Ruby Oil | Pleaded guilty in Galway Circuit Criminal Court (25 April 2006) | 18/05/2006 | €10,000 fine |
| Gort Oil | Pleaded guilty in Galway Circuit Criminal Court (25 April 2006) | 25/04/2006 | €7,500 fine |
| Michael McMahon | Pleaded guilty in Galway Circuit Criminal Court (21 March 2006) | 21/03/2006 | €1,500 fine |
| All Star Oil | Pleaded guilty in Galway Circuit Criminal Court (9 March 2006) | 10/03/2006 | €7,500 fine |
| Con Muldoon | Pleaded guilty in Galway Circuit Criminal Court (28 February 2006) | 10/03/2006 | €1,000 fine |
| Hi-Way Oil | Pleaded guilty in Galway Circuit Criminal Court (9 March 2006) | 10/03/2006 | €7,500 fine |
| Kevin Cunniffe | Pleaded guilty in Galway Circuit Criminal Court (9 March 2006) | 10/03/2006 | €1,500 |
| Matt Geraghty Oil | Pleaded guilty in Galway Circuit Criminal Court (9 March 2006) | 10/03/2006 | €7,500 fine |
| Mor Oil | Pleaded guilty in Galway Circuit Criminal Court (9 March 2006) | 10/03/2006 | €7,500 fine |
| Muldoon Oil | Pleaded guilty in Galway Circuit Criminal Court (9 March 2006) | 10/03/2006 | €3,500 fine |
| Seán Hester | Pleaded guilty in Galway Circuit Criminal Court (9 March 2006) | 10/03/2006 | €1,500 |
| JP Lambe | Pleaded guilty in Dublin Circuit Criminal Court (27 October 2005) | 06/03/2006 | 6 months in jail (suspended) and €15,000 fine |
| Michael Flanagan | Found guilty by a jury in Galway Circuit Criminal Court (2 March 2006) | 02/03/2006 | €3,500 fine |
