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Amendments to Law on Oil Products do not meet market economy norms, expert


https://www.ipn.md/en/amendments-to-law-on-oil-products-do-not-meet-market-economy-norms-expert-7966_1027964.html

Even if the amendments and supplements to the Law on Oil Products came into force over two months ago, no statement from agricultural producers about the intention to import oil products for the needs of their companies came so farm, Victor Parlicov, expert in energy matters at the Institute for Development and Social Initiatives “Viitorul”, said when presenting an analysis in the field, IPN reports.

Speaking about the experience of Croatia in capping retail oil prices, which was borrowed by Moldova, Victor Parlicov said that unlike Croatia, where only one company is specialized in the sale of oil products and also in production, in Moldova there are many companies and the introduction of oil price ceilings is not in accordance with the norms of a market economy.

The expert considers the legal provisions that only regulated the profitability of oil companies (up to 10%) were more appropriate for a free economy. The Competition Council should have applied the instruments it possessed to regulate the market and correctly set the prices. By the adopted amendments and supplements, the Council was practically excluded from this equation and the prices are now capped by the National Agency for Energy Regulation.

“The people and agricultural producers will continue to be dissatisfied and the blame will be put not only on the oil companies, but especially on the National Agency for Energy Regulation,” stated Victor Parlicov.

“Viitorul” executive director Igor Munteanu considers that this capping reminds of the dirigisme known in the not too distant past. “Viitorul”, within a project financed by the International Cooperation Agency of the Netherlands, will present more studies of the optimization of reforms in the public sector and improvement of services provided for the population.