By March 1, 2019, the National Agency for Energy Regulation is to approve a new methodology for forming and applying the prices of oil products. Under this, oil traders will agree and will modify by themselves the retail prices of the main oil products and of the liquefied petroleum gas based on consumption and costs related to the sale of the given products, in accordance with the applied accounting standards, including an annual profitability rate envisioned by the methodology, which will not exceed 10%.
In a response to an inquiry made by IPN, the Agency said that a law that contains amendments to a series of legal acts, including to Article 4 of the law on the oil products market, was published in the Official Gazette on December 12, 2018. The changes also refer to the formation of oil prices. Thus, the new methodology for forming and applying the prices of oil products should be agreed by the Agency by March 1. The current price ceilings set at the end of July will be used until the methodology is approved in accordance with the law on the oil products market.
Contacted by IPN, energy expert Sergiu Tofilat said that the old mythology is restored by the new provisions, with the setting of the profit margin of 10%. It looks like an agreement with oil importers and traders. Creating a competition market as in most of the developed countries would be ideal for consumers. For the purpose, a proper Competition Council and legal system are needed.
Sergiu Tofilat noted the methodology that is still in force correlates the prices at gas stations with wholesale prices of gasoline and diesel fuel. But most of the prices generate dissatisfaction and even protests, as it happened in May – June. That’s why the National Agency for Energy Regulation’s decisions to increase the price ceilings were suspended by courts. Later, in summer Parliament passed an amendment providing that the price ceilings will be set once in three months, not every two weeks.
“Asa result, the wholesale prices grew, while the capped prices did not and the oil traders started to accumulate losses. Probably owing to this, they agreed to restore the previous price formation formula,” stated the expert. As regards the March 1 deadline, Sergiu Tofilat said this is possibly related to the election campaign. According to him, the prices are now “stable”, but after March 1 the oil traders will be free to raise them, but this will append after the elections.
