Moldovan President Maia Sandu promulgates a law providing for the limitation of petroleum products prices.
Presidential press service reported this while recalling that following the meeting of the Supreme Security Council on February 26, the head of state recommended the parliament to amend the legal framework in order to limit prices. As noted, the need for legislative restrictions on prices for oil products arose because of cartel agreements in the oil market and the inaction of the Competition Council. “The law issued by the parliament is weak, it contains incomprehensible provisions, probably deliberately introduced there by some MPs, but I decided that it would be better to sign it as it is and make changes immediately after the elections. The next parliament will have to improve this law and, along with the government, put things in order in this area,” said Maia Sandu. The head of state noted that she would recommend the MPs to amend the provisions concerning the procedure for limiting prices for liquefied gas, to link the law to quality standards, to correct the formula used in the law, which contains confusion between volume and weight. “The promulgation of the law is a signal to market participants, the aforementioned institutions and politicians who protect the interests of some groups, that unjustified price increases and illegal enrichment of some people are no longer allowed behind the backs of many. We will put things in order in government institutions and ensure that the rules are followed by everyone,” said Maia Sandu. Earlier it was reported that the Parliament of Moldova adopted amendments to the Law on Petroleum Products, providing for the establishment of new general pricing rules in respect of basic petroleum products. The corresponding changes were made at the initiative of the independent MP Alexandru Oleinic. According to him, the amendments made by the parliament in July 2018 to the Law on the Oil Products Market, allowing the importers and sellers of oil products to set oil products prices, are unreasonable. Alexandru Oleinic said that the initiative he developed is aimed at ensuring the most fair prices for gasoline and diesel fuel, taking into account fluctuations on international and regional exchanges (Platt`s). Prices will be calculated for 1 liter, separately for each type of product and imported batch. The suggested frequency of recalculation is 14 days. According to the author, the amendments will lead to a fairer competitive environment in the market, especially for small companies, since price regulation will exclude potential abuse by large operators through de facto price dictation. According to the bill, the National Energy Regulatory Agency, within a month from the date of publication of the adopted law, will develop and approve a new petroleum products Pricing Methodology provided for in this law. As InfoMarket reported earlier, the Foreign Investors Association (FIA), in a letter addressed to Moldova’s parliament, noted that amendments to the Law on the Oil Products Market, proposed by MP Alexandru Oleinic, will lead to a reduction in imports of oil products and may endanger the supply of fuel to Moldova. The letter says that the bill did not take into account all the decisive factors for the formation of an adequate price for basic oil products and liquefied gas. // 06.05.2021 – InfoMarket
