{"id":449216,"date":"2021-02-19T14:18:52","date_gmt":"2021-02-19T14:18:52","guid":{"rendered":"https:\/\/www.moldova.org\/en\/?p=449216"},"modified":"2021-02-24T16:32:56","modified_gmt":"2021-02-24T16:32:56","slug":"the-best-rule-is-no-rules-or-why-moldovan-consumers-are-not-given-a-fair-fuel-price","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/the-best-rule-is-no-rules-or-why-moldovan-consumers-are-not-given-a-fair-fuel-price\/","title":{"rendered":"The best rule is “no rules” or why Moldovan consumers are not given a fair fuel price"},"content":{"rendered":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

Gas stations from Moldova display highly fluctuating prices in recent weeks. On February 17, for instance, fuel prices went up by 4-7%.<\/span> Overall, petrol prices increased by 19.5%<\/span>, while diesel prices grew by 19.2%<\/span> in the last 2 weeks. Consumers are outraged as they don’t understand what is really happening. Authorities shrug off their responsibility saying that new legislation is required. What is happening in the Moldovan fuel retailing industry?<\/p>\n

Head of the National Agency for Energy Regulation<\/strong>\u00a0(NAER), Stefan Creanga, explained<\/a> that, in Moldova, fuel prices are formed by considering the volume imported, the volume left unsold and the new cost on the market. As Stefan Creanga stated, Moldovan businesses import petroleum products from the same Romanian providers at similar prices. “Therefore, prices cannot differ much.”<\/em><\/p>\n

In reality, some Members of Parliament (MPs) raised awareness that there is a cartel agreement on the Moldovan oil market<\/span><\/strong>, which regulates prices according to business owners and some political groups’ appetite, rather than the real situation on the market, as it is mentioned in a statement<\/a> made by the member of Dignity and Truth Platform Party (DDTP), Alexandr Slusari.<\/p>\n

Additionally, parliamentary group representatives and some experts asked for the dismissal of the Competition Council and the NAER leadership. Presidential Adviser on Energy Policies, Sergiu Tofilat<\/strong>, published<\/a> figures showing that retail prices for diesel and petrol were artificially maintained at higher levels in 2020. Also, he claimed that the response of the agencies in charge was inappropriate, given the situation.<\/p>\n

\"\"

Source: Sergiu Tofilat| Facebook<\/p><\/div>\n

\"\"

Source: Sergiu Tofilat| Facebook<\/p><\/div>\n

“Moldovans are being robbed by the oil cartel, with the approval of two agencies controlled by socialists. The NAER and the Competition Council have sufficient attributions to verify the prices and to sanction the cartel agreements,” mentioned Sergiu Tofilat in his statement<\/a>.<\/p><\/blockquote>\n

According to the expert, while refineries’ prices fell in 2020 due to a reduction in global demand, Moldovan oil companies didn’t adjust the retail prices though. “Now that fuel price is rising globally, oil companies have rapidly raised prices as well: four price increases in a row in the last two months, including two significant price increases this week” <\/em>he also said.
\nPresidential Adviser on Energy Policies mentioned that the Competition Council simply answered that “it followed for 1 year and 11 months the dynamics of changing prices for petroleum products, to see if there are signs of coordinated action.” <\/em>No information regarding control results or taken actions were mentioned.<\/p>\n

The NAER informed<\/a> that the mechanism for capping prices on the oil market was cancelled in 2018<\/span><\/strong>, so the institution can control the profitability of market players only. The NAER checks that the maximum rate of return for the annual activity wouldn’t exceed 10% of company’s annual consumption and expenses and doesn’t consider the fact that the annual expenses could be artificially increased.<\/p>\n

Moreover, even though the agency confirmed that performing controls of oil operators’ activity, monitoring the compliance of retail prices and analysing the dynamics of price changes on internal and regional markets are the responsibilities of the NAER, the agency still would be “limited by the current legislation”<\/em> to intervene with other instruments in the price formation mechanism for petroleum products. The NAER management specified that changes in legislation would be needed for enabling the regulatory institution to limit the commercial mark-up to the gross price of oil.<\/p>\n

Photo: unknown<\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>Gas stations from Moldova display highly fluctuating prices in recent weeks. On February 17, for instance, fuel prices went up by 4-7%. Overall, petrol prices increased by 19.5%, while diesel prices grew by 19.2% in the last 2 weeks. Consumers are outraged as they don’t understand what is really happening. Authorities shrug off their responsibility […]<\/p>\n","protected":false},"author":31,"featured_media":449217,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,3,4],"tags":[990,989,987,986,35,109,992,27,988,991],"class_list":["post-449216","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-politics","category-society","tag-competition","tag-consumer","tag-fuel","tag-gas-station","tag-important","tag-law","tag-market","tag-moldova","tag-prices","tag-unfair"],"content_social_share":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

Gas stations from Moldova display highly fluctuating prices in recent weeks. On February 17, for instance, fuel prices went up by 4-7%.<\/span> Overall, petrol prices increased by 19.5%<\/span>, while diesel prices grew by 19.2%<\/span> in the last 2 weeks. Consumers are outraged as they don’t understand what is really happening. Authorities shrug off their responsibility saying that new legislation is required. What is happening in the Moldovan fuel retailing industry?<\/p>\n

Head of the National Agency for Energy Regulation<\/strong>\u00a0(NAER), Stefan Creanga, explained<\/a> that, in Moldova, fuel prices are formed by considering the volume imported, the volume left unsold and the new cost on the market. As Stefan Creanga stated, Moldovan businesses import petroleum products from the same Romanian providers at similar prices. “Therefore, prices cannot differ much.”<\/em><\/p>\n

In reality, some Members of Parliament (MPs) raised awareness that there is a cartel agreement on the Moldovan oil market<\/span><\/strong>, which regulates prices according to business owners and some political groups’ appetite, rather than the real situation on the market, as it is mentioned in a statement<\/a> made by the member of Dignity and Truth Platform Party (DDTP), Alexandr Slusari.<\/p>\n

Additionally, parliamentary group representatives and some experts asked for the dismissal of the Competition Council and the NAER leadership. Presidential Adviser on Energy Policies, Sergiu Tofilat<\/strong>, published<\/a> figures showing that retail prices for diesel and petrol were artificially maintained at higher levels in 2020. Also, he claimed that the response of the agencies in charge was inappropriate, given the situation.<\/p>\n

\"\"

Source: Sergiu Tofilat| Facebook<\/p><\/div>\n

\"\"

Source: Sergiu Tofilat| Facebook<\/p><\/div>\n

“Moldovans are being robbed by the oil cartel, with the approval of two agencies controlled by socialists. The NAER and the Competition Council have sufficient attributions to verify the prices and to sanction the cartel agreements,” mentioned Sergiu Tofilat in his statement<\/a>.<\/p><\/blockquote>\n

According to the expert, while refineries’ prices fell in 2020 due to a reduction in global demand, Moldovan oil companies didn’t adjust the retail prices though. “Now that fuel price is rising globally, oil companies have rapidly raised prices as well: four price increases in a row in the last two months, including two significant price increases this week” <\/em>he also said.
\nPresidential Adviser on Energy Policies mentioned that the Competition Council simply answered that “it followed for 1 year and 11 months the dynamics of changing prices for petroleum products, to see if there are signs of coordinated action.” <\/em>No information regarding control results or taken actions were mentioned.<\/p>\n

The NAER informed<\/a> that the mechanism for capping prices on the oil market was cancelled in 2018<\/span><\/strong>, so the institution can control the profitability of market players only. The NAER checks that the maximum rate of return for the annual activity wouldn’t exceed 10% of company’s annual consumption and expenses and doesn’t consider the fact that the annual expenses could be artificially increased.<\/p>\n

Moreover, even though the agency confirmed that performing controls of oil operators’ activity, monitoring the compliance of retail prices and analysing the dynamics of price changes on internal and regional markets are the responsibilities of the NAER, the agency still would be “limited by the current legislation”<\/em> to intervene with other instruments in the price formation mechanism for petroleum products. The NAER management specified that changes in legislation would be needed for enabling the regulatory institution to limit the commercial mark-up to the gross price of oil.<\/p>\n

Photo: unknown<\/p>\n

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