Experts speak out for re-evaluation of present model of oil products market's regulation in Moldova

Chisinau, 11 July /MOLDPRES/ - Experts deem it as necessary to re-evaluate the present model of regulation of the oil products market. According to them, in the absence of a proper competition environment and because of the new permissive regulatory framework, suspicions as to the correctness of the prices’ formation will persist. The conclusions are contained in a study presented by the Expert-Grup analytical centre today.    

Experts said that the new format of tempering of the prices for oil products must meet the minimal interests of all sides involved, being anchored on the prospect for the full liberalization of the concerned market.  

A programme manager at Expert-Grup, author of an analytical note Vadim Gumene said that, through the approval of the new methodology, decision-makers had returned to the old principles of regulation of the oil products market, enforced on the period 2007-2016. “This solution proved to be unviable during time, as, de jure, it was aimed at maintaining a correct level of prices, which would cover the relevant expenses, as well as reasonable rate of profitableness. De facto, in the context of the deficiencies of the competition framework, as well as of a permissive methodology, the reported profitableness of companies was even lower than the limit allowed and its capping at the maximal limit of ten per cent was absolutely useless,” the expert said.   

Another aspect analyzed makes reference to the comparability of the prices for oil products in Moldova and EU, as well as their quality. “At first sight, a comparative analysis points to smaller values against the prices practiced in EU of only 0.97 euro/litre for petrol and 0.87 euro/litre in case of diesel. Nevertheless, the findings are not quite correct, as they include taxes and duties related to the sale of oil products, which differ very much from one country to another. Thus, if the value added tax (VAT) and excise duties are excluded, the prices practiced in Moldova are even a bit above the European average level,” Gumene noted.

At the same time, experts say that the ensuring of the quality of products sold in line with the European standards in the field is essential through ensuring the functionality of the new system of monitoring the quality, which would support certainty among consumers that the price paid shows fully the quality of the products bought.