The revision of the current methodology for forming fuel prices remains the most indicated option given the particularities of the oil products market and the way in which the new methodology was approved in 2016. Moreover, the components of the price ceilings can be reviewed in a transparent way, by involving all the interested sides, so as to exclude disagreements in the implementation of the methodology, as it happens now. The independent think tank “Expert Grup” issued a new note on the oil products market of Moldova, IPN reports.
According to note author Vadim Gumene, programs director at “Expert-Grup”, any initiative that refers to sensitive issues from socioeconomic viewpoint need very through justification, based on empirical assessments by including methods and scenarios that would anticipate the modification of the status-quo, mandatorily the rise in quotes and the aligning of excise duties with the minimum of assumed commitments. “At the same time, we must be aware that the interference in the formation of prices, even of oil products, should be temporary and should represent only a stage prior to the full liberalization of the given market. Surely, the main condition is to exclude the shortcomings existing in the competition sector, while the competent institutions should more painstakingly analyze the practices existing in the field,” stated the expert.
The note says the oil products market of Moldova has been marked by a series of antagonisms based on the consumers’ disagreement with the rise in fuel prices. The climax was reached with the publication by the National Agency for Energy Regulation of the new fuel price ceilings for the recent past.
Later, under the pressure of protests mounted by consumers, the Ministry of Economy and Infrastructure, in concert with the Agency for Consumer Protection and Market Surveillance, requested the court to annul the Agency’s order by which new price ceilings were set. The Ministry argued the order was made in breach of the law, without being consulted with the interested sides in order to ensure transparency in the decision-making process and without analyzing the factors that contribute to the rise in the prices of oil products. Preconditions were thus created for causing irrecoverable damage to consumers. As a result, the Chisinau City Court suspended the Agency’s order for the reason that this could affect the rights and interests of an unlimited circle of people.
