(BRUSSELS) - EU competition regulators opened an in-depth investigation Wednesday into Norwegian oil firm StatoilHydro's bid for Jet petrol stations in Scandinavia, citing "serious" concerns amid rising fuel prices.

The European Commission's "initial market investigation has indicated that the proposed merger raises serious doubts ... as it appears that it could limit competition on the motor fuel retail markets in Sweden and Norway," the watchdog said in a statement.

"Rising oil prices make it even more important that consumers continue to benefit from competition at retail level," said EU Competition Commissioner Neelie Kroes.

"It appears that Jet has until now kept a downward price pressure on Statoil and that pressure may be permanently lost after the merger," she added.

Jet Scandinavia is part of ConocoPhilips of the United States and is mainly active in the sale of motor fuel at petrol stations.

In March, Statoil notified the Commission of the purchase of all issued share capital of Jet Denmark, Jet Sweden and Jet Norway.

Although Norway is not a member of the European Union, it is subject to the bloc's antitrust regulations as a member of the European Economic Area, which includes the EU's 27 members plus Iceland, Liechtenstein and Norway.

The transaction, announced last September, is for 274 service stations, most of them in Sweden.

Further information: Case M.4919 STATOIL / CONOCOPHILLIPS

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.