MOLDOVA MAY RETURN TO FUEL PRICE CEILING MECHANISM

At its working meeting that ended on Wednesday night, the Moldovan Government approved the amendments to legislation proposed by independent MP Alexander Oleinic that stipulate a return to the practice of setting by the National Energy Regulatory Agency (ANRE) of maximum-permissible retail prices on oil products.

The Government agreed with the amendment author’s opinion that the amendments will permit to ensure a balance of interests of fuel consumers and oil-product market participants.

The Government wrote in its Resolution that the current methodology of price formation creates favorable conditions for oil companies, which are very reluctant when it comes to lowering retail prices.

In 2016-2018, Moldova already used a mechanism, according to which ANRE used to set every 2 weeks maximum-possible retail prices on oil products. The Agency calculated the prices by applying a special methodology with an account of quotations on international exchanges – Platts for gasoline and diesel fuel and Argus for liquefied petroleum gas (LPG).

In that period, retailers had no right to sell fuels at prices higher than the ANRE-set maximums. Violations were fraught with severe sanctions – up to revocation of business licenses.