Moldovan energy regulator approves new methodology to lower petroleum prices
17:32 | 31.03.2016 Category: Economic
Chisinau, 31 March /MOLDPRES/-The administration board of the National Agency for Energy Regulation (ANRE) today approved a new methodology on the formation and enforcement of petroleum product prices, thus changing the previously used concept to determine fuel pump prices.
A previous analysis of Expert-Grup Independent Analytical Center ascertained that the enforcement of the new calculation formula of the new methodology would boost up competitiveness on the market and could lead to a decrease in the fuel price. An application created by the center's experts, shows that gasoline pump price was supposed to decrease by two lei and diesel by 80 bani in early March 2016
Compared to the current methodology, which provides for prices able to cover relevant expenses of the operators on the market along with a maximum ten-per cent lucrativeness, the new methodology sets a direct correlation between gasoline, diesel and liquefied gas prices on the internal market and the evolution of stock exchange quotes on the petroleum regional market, ANRE’s press service states.
The new pricing mechanism is based on four main components- average gasoline Platts quotes and average liquefied Argus quotes; transaction costs related to import operations, inclusively transportation and insurance costs; excise and VAT duty rates; a specific trade margin comprising the total value of spending and profit of oil companies. This margin is annually established by ANRE, based on the average spending structure of the oil market actors.
According to the new methodology, ANRE will set up price ceilings for retail gasoline and liquefied gas sale according to some previously established formulas, every 14 calendar days. Pries will be subsequently made public on ANRE’s official web page. The same day, each operator on the oil market will have to set their prices for the respective products, taking into account the ceiling prices established by ANRE. Operators will have to publish the prices on their web pages and display them on the billboards standing at their filling stations. Market operators are not allowed to retail sell gasoline, diesel and liquefied at a price higher than ANRE’s price ceilings.
ANRE believes that the new methodology will help boost up loyal competitiveness between petroleum companies, remove abusive oil pricing practices and also help decrease retail prices for consumers, as prices on regional markets will lower as well.
The methodology will enter into force upon its publication in Moldova’s Official Journal. Subsequently, ANRE’s administration board will decide on the maximal values of the specific trade margin related to gasoline, diesel and liquefied gas sale during the first year, which is fundamental for the availability of the new methodology and respectively, for price ceilings set out for the petroleum retail sale.
(Reporter V. Bercu, Editor M. Jantovan)
