Recent fuel increase in price also caused by devaluation of national currency

The recent increase in price of fuel in the Republic of Moldova is caused not only by the barrel fluctuation on international stock exchanges, but also by devaluation of the national currency. Victor Ghitu, executive-director of the Union of petroleum products importers “Importcompetrol” decalred about this for Info-Prim Neo. According to the quoted source, the devaluation of the leu influenced the aggravation of the situation, because the importers sell the fuel in lei, which further must be exchanged into dollars – the currency accepted by the oil distilleries. Moreover, Ghitu states that the exhaustion of the petroleum products stocks purchased previously at a lower price led to the increase in price of the fuel. Ghitu explained that the increase in price of the fuel was impending because the importer companies had incomes, practically, equal to zero for selling diesel gas or even by 0.15-0.2 lei/liter minus. According to him, this situation is characteristic not only for the small companies, but also for the big ones. The diesel gas costs 10 lei/liter at the customs, but further the importers have expenses for transportation, storing, and state taxes. So in the end the cost for 1 liter of diesel gas amounts to 10.5 lei. According to Ghitu, the fuel business representatives presented to specialized ministries calculations that showed that if the importer companies would work with an income of 10% in order to develop, than the price per 1 liter of A 95 gas would reach 12.35 compared to 11.95 lei – the present price after the last increase, and the diesel gas would cost 11.5 lei and not 10.4 lei – the present price. The representative of the importers avoided to make some estimation regarding the new increase in price of fuel, justifying that Moldova depends totally on the external market, where the price for gas is determined by some exporter countries and by the rate of dollar. Gas stations, on Tuesday, June 13 increased the price of gas by 2.6% and of the diesel gas by 3%. At the same time the foreign press agencies announced for June 13, a significant increase of the world prices for gas. As a result of the transactions at the most important petroleum stock exchanges in London and New York, the official prices at the recent petroleum operations constituted, respectively: IPE Brent Crude - $66.92 (-2.01) per barrel, Light Sweet Crude Oil - $68.56 (-1.80) per barrel. The analysts state that the reduction is due to the information regarding the increase, in May of the petroleum deliveries on the world market.