Competition in a Wholesale Fuel Market—The Impact of the Structural Changes Caused by COVID-19
Liquid fuels obtained in refining crude oil are one of the most important energies in economic activity. The domestic wholesale market for liquid fuels is of decisive importance for price formation in the national economy. The noncompetitive behavior of the market players at this level of the distri...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-07-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/14/14/4211 |
| _version_ | 1797527224316854272 |
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| author | Sylwester Bejger |
| author_facet | Sylwester Bejger |
| author_sort | Sylwester Bejger |
| collection | DOAJ |
| description | Liquid fuels obtained in refining crude oil are one of the most important energies in economic activity. The domestic wholesale market for liquid fuels is of decisive importance for price formation in the national economy. The noncompetitive behavior of the market players at this level of the distribution chain can significantly affect all downstream price levels and the producer–consumer surplus balance. Therefore, the competitiveness of this market should be screened and assessed regularly, especially when significant external factors change. This article attempts to evaluate the impact of structural changes on the global market of crude oil and energy products after the outbreak of the COVID-19 pandemic on the competitiveness of the wholesale fuel market in Poland. Using asymmetry of the reaction of product prices to changes in the prices of inputs as a marker of noncompetitive behavior and the NARDL model as a test specification, the price paths of market players before and after the occurrence of structural changes in the inputs’ processes were examined. Significant changes in the competitive behavior of players were revealed after the occurrence of structural changes at the beginning of the pandemic period in the year 2020. These changes may indicate enhanced competition and mitigation of potential market power abuse. |
| first_indexed | 2024-03-10T09:40:01Z |
| format | Article |
| id | doaj.art-3faa007285274f439b4d2ca60cf751d9 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T09:40:01Z |
| publishDate | 2021-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-3faa007285274f439b4d2ca60cf751d92023-11-22T03:41:55ZengMDPI AGEnergies1996-10732021-07-011414421110.3390/en14144211Competition in a Wholesale Fuel Market—The Impact of the Structural Changes Caused by COVID-19Sylwester Bejger0Faculty of Economic Sciences and Management, Nicolaus Copernicus University in Toruń, 87-100 Toruń, PolandLiquid fuels obtained in refining crude oil are one of the most important energies in economic activity. The domestic wholesale market for liquid fuels is of decisive importance for price formation in the national economy. The noncompetitive behavior of the market players at this level of the distribution chain can significantly affect all downstream price levels and the producer–consumer surplus balance. Therefore, the competitiveness of this market should be screened and assessed regularly, especially when significant external factors change. This article attempts to evaluate the impact of structural changes on the global market of crude oil and energy products after the outbreak of the COVID-19 pandemic on the competitiveness of the wholesale fuel market in Poland. Using asymmetry of the reaction of product prices to changes in the prices of inputs as a marker of noncompetitive behavior and the NARDL model as a test specification, the price paths of market players before and after the occurrence of structural changes in the inputs’ processes were examined. Significant changes in the competitive behavior of players were revealed after the occurrence of structural changes at the beginning of the pandemic period in the year 2020. These changes may indicate enhanced competition and mitigation of potential market power abuse.https://www.mdpi.com/1996-1073/14/14/4211liquid fuel marketasymmetric pass-throughcompetitionstructural breaksNARDL model |
| spellingShingle | Sylwester Bejger Competition in a Wholesale Fuel Market—The Impact of the Structural Changes Caused by COVID-19 Energies liquid fuel market asymmetric pass-through competition structural breaks NARDL model |
| title | Competition in a Wholesale Fuel Market—The Impact of the Structural Changes Caused by COVID-19 |
| title_full | Competition in a Wholesale Fuel Market—The Impact of the Structural Changes Caused by COVID-19 |
| title_fullStr | Competition in a Wholesale Fuel Market—The Impact of the Structural Changes Caused by COVID-19 |
| title_full_unstemmed | Competition in a Wholesale Fuel Market—The Impact of the Structural Changes Caused by COVID-19 |
| title_short | Competition in a Wholesale Fuel Market—The Impact of the Structural Changes Caused by COVID-19 |
| title_sort | competition in a wholesale fuel market the impact of the structural changes caused by covid 19 |
| topic | liquid fuel market asymmetric pass-through competition structural breaks NARDL model |
| url | https://www.mdpi.com/1996-1073/14/14/4211 |
| work_keys_str_mv | AT sylwesterbejger competitioninawholesalefuelmarkettheimpactofthestructuralchangescausedbycovid19 |