OREANDA-NEWS. February 10, 2011. The National Agency for Competition Protection (NACP) suggests carrying out the petrol market liberalization in Moldova and give up tickets to enhance competition in this area. It was said at a press conference by the NACP Director Viorica Carare saying that following the checks in the petrol market, the Agency established that the competition in this area exists, however, to make it stronger, the Agency suggested introducing some alterations to the legislation.

According to her, an excessive regulation and lack of legislative norms contributing to development of free competition is characteristic for the Moldovan petrol market. This fact led to the hidden competition among the companies which cannot be advantageous for consumers. The NACP states that it has found the presence of the real intensive competition in the market showed through the use of prices differing from the ones written on the indicator panels, as a result of using wholesale concessions, discounts and tickets.

The Agency suggests taking the real competition out on the indicator panel by fostering competition with import of fuels and lubricants and by non-admission of the leakage of information about the forthcoming change in prices. It is suggested that each transaction carried out at the prices indicated on the indicator panel at the gas-filling stations (including VAT). The discounts are suggested to be provided centrally on the basis of the checks (tax bills) referring to the performed transactions and without further VAT compensation. The NACP believes that the discount policy should be transparent and depend on the volume of purchased fuel. The Agency comes out in favor of the switch over from the quantitative system of cars (liters) to the value one.

To enhance competition in the fuel and lubricants import activity, the Agency suggests eliminating the barriers to the market entry, namely, the condition that the main fuel and lubricants importers are to have their own storage tanks of at least 5 thousand cubic meters, and the own capital of at least USD 750 thousand. To avoid the leakage of information about the forthcoming change in prices, the Agency suggests changing the Methodology of calculation regarding the clause of the obligatory notification of the Agency by the economic agents at least three days before the rise in prices. Viorica Carare said the Moldovan government had been informed of these measures several times and the Agency would once again inform the Parliament, government and the National Energy Regulatory Agency of the necessity of taking measures to liberalize the competitive space in this market.