The Government of the Republic of Moldova will provide assistance to the categories of people who are affected by the rocketing fuel prices the most. These are the farmers and carriers who will get subsidies from the state so as to be able to continue work. Energy experts said the continuous rise in fuel prices is due to the unpredictability on the international market and to the fact that the fuel supplies in Ukraine were destroyed by the Russian troops as military targets, IPN reports.
Energy experts noted the rise in fuel prices was fuelled by EU states’ intentions to impose bans on Russian oil and gas imports. Moldova is a collateral victim of the war in Ukraine in which a large part of the stores of diesel fuel were destroyed.
“There is nervousness on international markets and this affects the consumer in the Republic of Moldova too. The breaking of logistic chains that crossed the territory of Ukraine as a result of which the bringing of oil products was disrupted is another aspect. The tension was caused by the news about the ban that is expected to be imposed on the Russian Federation. As it is not clear who will substitute these volumes, the prices soared. An eventual ban on the part of the European Union can cause a shortage on the market and price rises,” energy expert Victor Parlicov stated in the talk show “Secrets of the Power” on JurnalTV channel.
Representatives of the ruling party also said the increase in fuel prices is due to the situation in Ukraine as a part of the oil products were imported from Ukraine. The state will offer support only to the most seriously hit categories.
“30% of the imported oil products came from the Eastern market. As to the reduction in VAT and excise duties, it must be clear that the excise duty on diesel fuel is 2.9 lei, the VAT rate is 20% of the price together with the excise duty. If the VAT is reduced to zero, the effect will last for a day as the prices rise daily. But such a move will cause a gap in the country’s budget. Targeted measures will be taken to help farmers and carriers. The farmers in the European Union are supported by being refunded the excise duty. Diesel fuel is indeed more expensive, but sunflower seeds last September also cost 6.5 lei and now cost 18 lei a kilogram,” stated PAS MP Vladimir Bolea.
Expert of the Institute for Development and Social Initiatives “Viitorul” Igor Munteanu recommended the authorities to take the suspension of excise duties on oil products into account, especially for farmers so that the spring field works are not jeopardized.
“It’s true that the prices rise everywhere in Europa. In these conditions of uncertainty and war in the neighborhood, measures should be taken to support the economic segments that can be assisted by the state. I refer to the farmers who already started the spring works. The authorities can allow the farmers to pay particular taxes later and can suspend the excise duties on the oil products needed by these. A gap in the budget is possible, but this gap will be larger if the farmers stop work,” stated Igor Munteanu.
For today, the National Agency for Energy Regulation set the price of 26.68 lei per liter of gasoline, up 0.99 lei, and of 25.02 lei per liter of diesel fuel, up 1.91 lei. This is the highest rise in fuel prices during a day.
