The adoption of the bill proposed by Alexandru Oleinic – concerning the establishment of the general norms for calculating and applying the prices of the main oil products – will negatively influence the economic activity of oil companies, including the import of the main oil products. It will distort the competition environment on the domestic market and will lead to the worsening of the labor conditions. This is the reaction of the oil companies that are members of the Foreign Investors Association. In a letter addressed to the author of the proposal, the Parliament’s commission on economy, budget and finance, and to the National Agency for Energy Regulation, the signatories say that if the bill is passed, the import of oil products will decrease considerably and will endanger the oil security of the Republic of Moldova, IPN reports.
The oil companies underline that the bill does not reflect all the factors that in a practical way should determine the retail price of the main oil products and the liquefied petroleum gas. “Moreover, a shortage of liquefied petroleum gas is annually witnessed in April-September. This way, so as to ensure the necessary quantities in the Republic of Moldova, this product is purchased from the Russian Federation, which sells liquefied petroleum gas at fixed prices, avoiding quotations. As a result, there can be situations when the purchase price of liquefied petroleum gas can significantly exceed the value of the Argus DAF Brest quotation, which is stipulated in the bill. In such conditions, the import of this product and is subsequent retailing on the market of the Republic of Moldova become inefficient and can lead to a shortage of liquefied petroleum gas in Moldova,” runs the letter.
The oil sellers note the highest selling prices of the main oil products cannot be determined separately for each lot of imported products as the companies will have to calculate an upper price each time these products are imported, regardless of their quantity. In practice, the oil companies cam perform about 100 such entrances and this is impossible to be put into practice.
“If this proposal is implemented, the oil companies will have to reduce/halt operations in the Republic of Moldova. As regards the import of the main oil products (in general), if the bill is adopted, the import of the main oil products will considerably decline, endangering the oil security of the Republic of Moldova in terms of the sufficiency of oil products,” runs the letter.
The companies expressed their interests and readiness to be actively involved, including to provide assistance in drafting and implementing amendments to the bill and the relevant secondary legislation.
