Not even the most experienced trader can say how much the gasoline and diesel fuel will cost tomorrow because the prices are formed on international stock exchanges and are dictated by the daily supply and demand, Andrei Adam, head of the Licensing and Licensed Activities Monitoring Division of the National Agency for Energy Regulation (NAER), stated for IPN. The expert was asked to comment on the Agency’s decision to raise fuel price ceilings the fourth consecutive time already.
When asked why the NAER raises the price ceilings when the price of a barrel of oil decreases, Andrei Adam said the oil market is different from the market of fuels deriving from oil. For example, the price of a barrel of Brent oil on January 5 and 6 was US$56.8, but according to the Platts quotations, the price of a tonne of gasoline and diesel fuel rose by US$9 and, respectively, US$8 to US$545-554 and US$484-492 respectively.
The NAER specialist also said the wholesale oil products market has its own prices. As a result of the capping of retail gasoline and diesel fuel prices by the Agency, the wholesale market is to adjust the supply independently.
Under the regulations approved by the Government, the sale of oil products wholesale is allowed only at oil storehouses, while retailing is allowed only at certified gas stations. This means that regardless of the quantity, any sale of fuels at gas stations is considered retailing.
Expert of the Institute for Development and Social Initiative “Viitorul” Victor Parlicov earlier told IPN that the credibility of oil prices cannot be ensured by capping and instituting a competitive mechanism is the only solution by which the state can intervene in the oil products market.
The retail fuel price ceilings set on January 11 for the next two weeks are: 17.99 lei per liter of gasoline premium 95 and 15.61 lei per liter of diesel fuel.
