The Administration Board of the National Agency for Energy Regulation (NARE) approved the methodology for calculating and applying the prices of oil products. The meeting was held online and involved fuel sellers.

The document envisions the approval of margins on the retailing and wholesaling of the main oil products and liquefied petroleum gas. The Agency’s decision takes effect on July 1, while some of its provisions – when it is published in the Official Gazette, IPN reports.

The retail prices of oil products, existing before the coming into force of Law No. 54/2021 to amend Law No. 461/2001 on the oil products market, remain in force and cannot be increased by sellers until the decision takes effect. The oil products available in stock when the decision takes effect will be considered one batch and the highest price for these will be determined depending on the average values of each type of products on that day.

Cristina Tiscul, of the Foreign Investors Association (FIA Moldova), said the oil companies that are members of the FIA, as a result of calculations determined that the specific commercial margin on the main oil products does not cover the minimum costs of oil companies, not to mention the profit, and they thus sustain losses. The oil companies need at least half a year to bring their IT systems in compliance with the new methodology. Consequently, with a negative return, there will be repercussions for the employers of oil companies.

NAER director Ștefan Creangă said he realizes the risks faced by companies, but does not understand why they don’t optimize their activity, for example, by reducing costs for renting particular gas stations or by other methods. “Your inefficiency cannot be shifted onto the consumers,” he stated.

The methodology for calculating and applying the prices of oil products is mandatory for all the business entities that are authorized to retail or wholesale the main oil products prices and liquefied petroleum gas in the Republic of Moldova.