The MPs of the Party of Action and Solidarity (PAS) registered a bill that is designed to overcome the “turbulence” witnessed on the oil products market following the adoption by Parliament of the “law of ex-MP Oleinic” – the law on the oil products market (legislative proposal of former independent MP Alexandru Oleinic). The bill provides that the highest retail prices of oil products are set by the National Agency for Energy Regulation (NAER), IPN reports.

According to PAS MP Vladimir Bolea, the bill amends Article 4 of the law, which regulates the formation of prices, so that it clearly provides that the highest retail prices of oil products are set by NAER based on the methodology for calculating and applying the prices of oil products.

In another development, PAS MP Radu Marian said the “Oleinic Law” was adopted with a number of conceptual and formulation mistakes. It is an editing mistake by which the right of business entities to import oil products was excluded, as was the right of business entities and farmers to benefit from reduced prices when buying oil products wholesale. The current law provides that the business entities set prices based on the margin decided by NAER. But this means that the business entities must have access to the Platts quotations. This service costs over 1 million lei and such costs are considerable for small filling stations.

Another problem, as Radu Marian said, is the fact that the types of fuel whose quality is superior to that stipulated in the European and national technical specifications disappeared. Also, the law allows importing gasoline and diesel fuel with a sulfur content that is five times higher than the national legislation and environmental norms permit.

The bill is designed so solve all these problems and to keep the oil prices capping mechanism so as to ensure correct prices of oil products. Radu Marian said this draft law is a temporary solution and is not an ideal solution to all the problems. In the immediate period, they will work on a complex initiative that will ensure greater competition and efficiency on the market.

PAS MP Sergiu Lazarenco noted the bill gives enough maneuvering space to NAER for this to adjust the specific profit margin so that the capping does not endanger the activity of filling stations and to promote increased efficient on the market. The successful activity of filling stations depends more on efficient management, reduction of useless costs and stopping of pump fraud rather than on the NAER’s capping mechanism.

According to PAS MPs, the bill was discussed with Moldovan oil importers and sellers and will be submitted to Parliament for consideration.