The Competition Council, considering the importance of fuels market for the economy of the Republic of Moldova, in view of introducing clarity on the authorityÙs tasks related to the increase of price for fueles, state the following:

     1) The Competition Council addresses the issues of changing prices on the oil market through the prism of competition environment quality. Therefore, the specifics of functionality of the Competition Council does not allow for the exposure on the increase / decrease of market prices of petroleum products without concrete investigation. The conclusions to this refer to the fact that if the price of rivalty among undertaking is predefined by them in a coordinated manner, and do not refer to wherther the price is high or low. From the point of view of competition any commom price setting shall be incompatible with the market.

     2) In 2011, the Competition Councilstated the cartel agreement among participants on establishing the price for fuel products in a coordinated manner. The conclusions were not supported by the courts from the Republic of Moldova. The court considered that the simultaneous increase of price in the context of a regulated market (the unique method of calculating and applying prices, compulsory reporting on the intention to change the price; the mediatization of such intentions) may not be deemed reasonable ground for suspecting legislation infringement.

     3) Nowadayas, as a result of the events occurred in autumn 2013 (increase of price for fuel products) the Competition Councilis carrying on useful investigation for studying the market of wholesale and retail commercialization of main oil from the Republic of Moldova. (letter of Competition Counciladdressed to the Government nr.AA-3/196-999 as of 25.11.13). Such investigations are undeniably necessary, in case there no other cartel signs but simultaneous price increase on the market of retail commercialization.

     4) The prerogative of state regulation of price on oil market, including the control over the correctness of price calculation is the market regulator- National Agency for Regulation in Energetics (NARE). Unlike the investigations instrumented by the Competition Council, verification of a calculation based on formula and indentification of components included with infringement of legal norms seems to be possible to realize in an operative way, with the immediate results and proper explanations.

    5) In this context, for the purpose of setting new conditions of competitive operation of the oil market, the Competition Council, reiterates its position on the necessity of liberalization of the market by the following measures:

     *  removal of unjustified barriers at entrance on the market of commercializing oil products,

     *  ceasing to request oil companies to provide NARE with calculations related to price change before applying them,

     *  liberalization of process of calculating the price to fuels.

     These recommendations remain actual and in line with the Association Agreement between the European Community and the European Atomic Energy Community and its member states, on the one hand, and the Republic of Moldova, on the other hand (ex. Directive 2009/119 EC of the Council as of 14 September 2009 on the obligation of member states to maintain a minimum level of reserves of crude oil and petroleum).

 

Competition Council, 11 March 2014