ANRE allows oil companies to have greater flexibility when fixing prices

The oil operators in Moldova will have a greater flexibility in calculating and fixing the prices of the products they sell. The new methodology approved by the National Agency for Energy Regulation (ANRE) on October 5 preserves the profitability rate of up to 10%, but says that the rate will be used as yearly average per enterprise and not per type of fuel or for each period when new prices are fixed during a year, as it was done until present. ANRE director general Vitalie Iurcu said that the approved amendments will allow the economic operators to have a profitability rate according to the season. During agricultural works for instance, the oil operators could have a zero profitability rate and a much higher rate to compensate for this one during another season. The yearly average must not exceed 10%. Each time the companies will post higher oil prices, they will have to submit the calculations to ANRE so that the agency could see if the calculation methodology was accurately used. Asked to say if the flexibility offered by the new methodology means different prices at the filling stations or for the importer, Vitalie Iurcu said that such a decision will be made by the operators. The prices of oil products are not regulated by the state. ANRE only approves the methodology for calculating them and makes sure that it is correctly implemented. Victor Ghitu, executive director of the association “Importcompetrol”, said that the given methodology respects the interests of the oil importers, with small exceptions. He also said that a greater profitability rate will enable the oil operators to develop, but the practice shows that the current profitability rate is not higher than 5-6%. The profitability rate on diesel oil is only 1-2%. The mew methodology will come into force after published in the Official Gazette.