Moldovan authorities, farmers, petroleum companies' representatives discuss methodology to form oil products prices

Chisinau, 1 July /MOLDPRES/ - The special parliamentary commission for working out and approval by the parliament of a set of legislative amendments to support farmers today discussed the draft law, which provides for the methodology to form prices for petroleum products and right of farmers to import diesel oil for their own consumption, the parliament’s communication and public relations department has reported.

Attending the meeting were MPs, cabinet members, representatives of farmers and petroleum companies.

The bill proposes to modify the methodology of formation of prices for petroleum products. Under the new provisions adjusted to the European practice, the retail of the main oil products will be calculated based on average quotations Platts FOB MED, in line with ”European Marketscan”, recalculated in national currency. Primary transaction costs related to import operations, excises quota, VAT, as well as the specific commercial margin, set by the National Agency for Energy Regulation (ANRE ) annually, which includes the amount of costs and losses recorded when selling petroleum products, will be added to the respective value.

Both farmers and representatives of petroleum companies welcomed the approval of the set amendments, specifying that the present calculation methodology was obsolete and inefficient.

The officials also approached farmers’ proposal to increase the Agricultural Subvention Fund and to provide subsidies for each tilled hectare. Speaker Andrian Candu demanded that the Finance Ministry presents data on this item, by estimating the necessary costs and identifying possible financial sources. 

The draft law discussed at the meeting is to be completed with proposals coming from oil companies’ representatives and ANRE, in order to set the right of farmers to import diesel oil for their own consumption and prevent abuses and smuggling of oil products.

“I am contented with the progress recorded by the special commission. I think that, in early next week, we will put on the MPs tables the entire agricultural package, to be signed and introduced in legislative procedure. Till 15 July or in the worst case, by the end of the spring session, I think we will manage to approve them, and the commission is to present a report to the parliament’s plenum,” Parliament Speaker Andrian Candu said. 

At the previous meeting, the special commission for working out and approval by the Moldovan parliament of a set of legislative amendments to back farmers proposed six draft laws for consideration. The commission was set up at an initiative by Speaker Andrian Candu, under parliament decision No 103 from 21 May 2015. The commission, made up of MPs from all parliamentary factions, was to propose, till 1 July, draft laws on development of agriculture and backing Moldovan farmers.     

(Editor A. Raileanu)