NAER denied accusations of the regulator's involvement in the growth of prices for oil products.
At the same time, NAER reminded that it does not have the authority to directly interfere in the process of setting fuel prices, which are determined by each company on the basis of market principles. In particular, in the context of recent developments in the oil products market, the National Agency for Energy Regulation noted a subjective and unreasoned approach in the public space regarding the agency's role and functional responsibilities on this issue. The NAER stressed that at present, fluctuations in international markets and exchanges demonstrate a continuous rise in prices for oil and oil products, which affects the conjuncture of prices for fuel in the domestic market. “To our regret, this situation is widely used by various political forces, which often interpret tendentiously and speculatively the powers and possibilities of NAER intervention,” the regulator said in a statement. It is reminded that, in accordance with the Petroleum Products Market Law, retail prices for basic petroleum products and liquefied gas are set and changed only taking into account the consumption and costs associated with the sale of these products, in accordance with applicable accounting standards, including the annual rate of return provided by the Methodology for the formation and application of prices for petroleum products, which should not exceed 10%. In this context, NAER is empowered to license activities in the oil product market and monitor compliance with the level of profitability by conducting thematic control and checking information provided by licensed operators. Quarterly and annual reports on the monitoring of the oil products market are published on the NAER website and submitted to other competent institutions. NAER once again drew attention to the fact that, in accordance with the current legal framework, it does not have the powers and responsibilities that allow the agency to directly interfere in the process of setting prices for oil products, which are set by each company on the basis of market principles. “Any monopoly situation or dominant position in a certain market can be the subject of an investigation by the Competition Council, a body authorized by law with the necessary powers. NAER provided the relevant institution with all available information about the processes taking place in the oil product market, ”the energy regulator said. They also stressed that in order to improve the regulatory framework in this area, NAER sent a number of proposals to the government, parliament and the presidential administration on amendments and additions to sectoral legislation in order to regulate the procedure for setting prices for oil products in the domestic market.// 24.02.2021 — InfoMarket.
