Authorities should regulate the wholesale price of diesel fuel and exclude speculative intermediation - Veaceslav Ionita.
Economic policy expert at the Institute for Development and Social Initiatives (IDIS) Viitorul believes that in recent days diesel fuel has risen in price much more than in the whole of last year, and this reverses any economic logic. Thus, during the year the price of diesel fuel increased by 5 lei, and in recent days it has also increased by 5 lei. At the same time, in recent days, wholesale prices were 7 lei higher than retail prices. According to the expert, the authorities should immediately regulate the wholesale price of diesel fuel and eliminate speculative intermediation. “A few days ago, diesel fuel was sold at gas stations for 25 lei per liter. At the same time, it was offered to agricultural producers at a wholesale price of 28.5 or even 29 lei per 1 liter, which is explained by the so-called “liberalization” of the wholesale market. Under these conditions, the intervention of the Commission for Emergency Situations was required to stop the price increase, possibly caused by imperfect legislation. But according to economic logic, wholesale prices should be lower than retail prices. This principle has operated in Moldova for 30 years. A few days ago, importers of oil products became insolent,” the expert says. According to Ionita, the current crisis with oil products is the result of a monopoly in this market, when there are only three importers, and the rest are intermediaries. They manipulate prices and receive unreasonable super profits, and also blackmail the authorities with the “lack of diesel fuel” on the eve of spring field work. According to the expert, the Competition Council should answer the following questions: how can the wholesale price of diesel fuel be higher than the retail price at gas stations; whether there are abuses of dominance by companies operating in the local market; whether they imposed an unreasonable price. “Authorities should regulate the wholesale price, which should include the retail price set by ANRE for gas stations, minus expenses. That is, the price should be 1–1.5 lei lower, because it seems that on the one hand the market is liberalized, but on the other hand it is not,” the expert notes. Ionita believes that the Competition Council should apply penalties for what happened within two days on the oil products market. If fines are not imposed, then such abuses in the market will continue. He also believes that the intervention of the Information and Security SErvice is necessary in order to determine why artificial chaos arose in the country on the oil market and who controlled this situation. “The Commission on Emergency Situations should take another urgent measure - to regulate wholesale prices and remove all obstacles that prevent Moldovan companies from purchasing directly from manufacturers and allow intermediaries, taking advantage of the situation, to receive unjustified profits. Otherwise, we risk jeopardizing the spring field work,” says Veaceslav Ionita. // 14.03.2022 – InfoMarket
