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Competition Council should bring things on fuel market in order, expert


https://www.ipn.md/index.php/en/competition-council-should-bring-things-on-fuel-market-in-order-7966_1071335.html

The more frequent changes in fuel prices are a good signal as these are adjusted daily at international level. However, if the prices at all the operators change to the same or a similar extent, this shows the competition mechanisms remain inefficient, stated the former director of the National Agency for Energy Regulation (NAER) Victor Parlicov.

According to the expert, the return to the capping of fuel prices is not a solution when competition is to be ensured on the market. The Competition Council should do its job and should determine if there are price agreements between fuel sellers as this is a direct and flagrant violation of the law.

Asked by IPN to comment on the recent rise in fuel prices that was shortly followed by a decline in prices, Victor Parlicov said this is a move in the right direction. The prices cannot be kept fixed during months when the quotations, exchange rates and stores change daily. As to the authorities’ intention to allow again the National Agency for Energy Regulation to limit prices, the expert reminded that the MPs who introduced the capping in 2016 voted to restore the methodology by which fuel sellers set prices themselves.

He noted the fuel price capping was just an illusion of regulation of prices. When the prices started to grow at the world level, it was decided to abandon the capping method as the NAER had to assume that rise at filling stations. All kinds of stratagems were used then: the NAER raised the prices and the Ministry of Economy then challenged the rise in court and the court suspended the Agency’s decision. Ultimately, everyone tried to avoid bearing responsibility for the raised prices.

Victor Parlicov stated that the fuel sellers should assume responsibility for prices, while the officials from the competition sector should follow the developments. If there are price agreements, penalties should be imposed. One penalty that would lead to the ruining of an operator is enough as things in the area will be then brought in order.  

Filling stations posted lower fuel prices in the morning of February 7. Gasoline is by 0.30 lei on average cheaper, while diesel fuel and liquefied petroleum gas by 0.30-0.40 lei. Almost one week ago, the fuel prices were decreased by 0.20-0.25 lei/liter.