Prime Minister Pavel Filip has instructed the Ministry of Economy to make whatever regulatory modifications are needed to re-instate a price ceiling mechanism on retailed liquefied gas.

“In 2015 a new price-forming mechanism had been instituted for petroleum products, whereby liquefied gas had been subject to price capping just like gasoline and Diesel fuel. I just want people to know that the annulment of the price ceiling on liquefied gas this summer was the result of an amendment proposed by a group of MPs. I regret that the amendment was ultimately passed by Parliament. We shall discuss with the MPs to see how this was possible”, Pavel Filip told Wednesday’s Cabinet meeting.

Contacted by IPN, Anatol Barbei, spokesperson for the Energy Regulatory Agency ANRE, said Pavel Filip was acting on ANRE’s request. “Since ANRE doesn’t have the prerogative to propose legislation, (the Agency) decided to approach the Government with this request”, said Barbei.

ANRE argues the price ceiling is needed because liquefied gas is imported into Moldova and its retail price should depend on how it trades on international stock exchanges. “We had cases in the past when international prices fell, but domestic prices stayed the same or even rose”, explained Barbei.

At present, ANRE is updating gas and petrodiesel price caps every two weeks depending on international prices. However, liquefied gas retail prices are an exception, with importers and retailers deciding how low or high they should be. Their only limit, as per the recent amendment, is that they should keep “a reasonable profit margin”.