Galway oil companies 'sharks in the water'

A Circuit Court judge yesterday described a former small-time home heating oil distributor as a "minnow" surrounded by "sharks…

A Circuit Court judge yesterday described a former small-time home heating oil distributor as a "minnow" surrounded by "sharks" in the home heating oil distribution business, at the close of a trial into the alleged operation of a price-fixing cartel in the industry in Co Galway from the late 1990s until 2002.

Former oil distributor Michael Flanagan, of Rathfarn, Loughrea, Co Galway, trading as Flanagan Oil, denied two charges before Galway Circuit Criminal Court of being involved in a cartel which fixed the price of gas oil and kerosene home heating oil between January 1st, 2001 and February 11th, 2002.

Mr Flanagan, who is now employed as a lorry driver for Maxol, became visibly upset in the witness box yesterday as he told the jury that his one-truck oil distribution business had been put under severe pressure when it was undercut by bigger companies after he stopped attending price-fixing meetings in 2001.

He admitted attending five meetings in all of the Connacht Oil Promotion Federation (COPF) - a group of oil distribution company directors and employees operating in Galway city and county.

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Mr Flanagan admitted price fixing did go on at these meetings but he remained adamant throughout his two-day trial that he did not take part in price-fixing and did not adhere to the prices fixed at the meetings.

He said he regularly charged less for home heating oil than his competitors.

"I did my own thing, but when I did and when I stopped going to meetings I got phone calls telling me other oil companies were now canvassing for business in my area and were undercutting me. I felt I was being harassed. I had six kids and I was under a lot of pressure at the time. I attended three more meetings and then I stopped going," he said.

Mr Flanagan contended he lost customers because bigger companies then moved in on his patch in east and south Galway.

In his charge to the jury yesterday evening, Judge Raymond Groarke said: "I believe the accused was part of a much bigger picture. He was a minnow and there were clearly sharks in the water with him who might benefit from the attention of a court and a jury. I'm told there are other cases in the offing."

In a linked development, the co-accused, Muldoon Oil Ltd, and its director, Conrad Muldoon, of Athenry Road, Loughrea, pleaded guilty last Tuesday to entering into an agreement with other oil distributors to fix the price of gas oil between the same dates and was remanded on continuing bail to await sentence on Friday, March 10th.