OREANDA-NEWS. October 08, 2012. The government of Moldova lifts the requirement of oil product importers’ having fuel storage tanks and the adequate capital. This is stipulated by amendments to the law of oil product market Cabinet ministers adopted at the imitative of the Ministry of Economy in order to make the market more accessible for new companies, enhance competition and bring fuel prices down.

According to Vice-premier, Minister of Economy Valeriu Lazar, ministers approved the lift of old requirements of having tanks, own or held on lease, enough to store at least 5 thou t. of oil products imposed on fuel importers and of having the tanks to store at least 150 c.m. of gas imposed on gas importers. Besides, importers do not have anymore to have the own capital of 8 mln. leis to be authorized to import oil products.

If passed by the Parliament, the amendments are planned to further liberalization of the oil product market; to remove barriers debarring new importers from the market and to enable operators reduce their costs. Enhanced competition in the market will allow to reduce the fuel cost. According to the Minister of Economy, there is the limited competition and excessive concentration in the market since close to 85% of it are controlled by 5 companies.

This situation roots in exorbitant requirements to oil companies, which have to have tankers at a volume of 5 thou c.m. and the minimum required capital of 8 mn leis. They create disloyal competition and impede new importers from entering the market.