Parliament in the first reading adopted a bill on ensuring the security of supplies of petroleum products, which involves the creation of a system of emergency fuel reserves in Moldova to protect against energy crises. NM tells what else the project envisages and how the formation of reserves will affect the price of fuel.
What kind of project
The bill on ensuring the security of supplies of petroleum products was supported in the first reading at a meeting on May 28 by 58 deputies from the ruling Action and Solidarity (PAS) party and the Democracy at Home party. Its author was the Ministry of Energy.
The document was presented in parliament by the ministry’s state secretary, Vitalie Mita. He noted that the bill provides for the implementation of a European directive, but the document is also important for Moldova. According to him, the existing infrastructure is not enough for uninterrupted fuel supplies in case of crisis situations.
According to the bill, fuel reserves must be maintained at the level of either 90 days of average imports or 61 days of consumption, whichever is greater. Reserves may include gasoline, diesel fuel, jet fuel and heating oil. The government will determine which types of fuel will be included in the reserve.
Mytsa said that the authorities will create a central storage structure, which will be responsible for storing half of the fuel reserves. The remaining half will have to be provided by fuel importers in proportion to their market share.
A similar principle is provided for the distribution of reserves between Moldova and foreign storage facilities: half of the reserves should be stored within the country, half outside its borders.
The creation of the reserve system will take eight years and will occur in stages. A similar transition period is provided for fuel importers.
Fuel storage costs will be included in the cost of petroleum products. “This is not a payment without a purpose, but a protection mechanism,” Mytsa noted. Additional costs could amount to about 60 bans per liter of fuel. The bill includes the amount of 48 bans without VAT, so the final increase in price including tax could reach approximately 60 bans.
The head of the parliamentary commission on economy, budget and finance, PAS MP Radu Marian, said that exact figures were still to be discussed, but, according to him, contributions should gradually decrease as the storage infrastructure is ready. On average, the deputy noted, contributions will be about 2% of the cost of fuel.
How the bill was discussed
Radu Marian asked Vitalie Mita when the first fuel reserves would be formed.
“The official responded that “immediately after the law is passed, the government must set (reserve) quotas and importers will have 200 days to meet them.”
Former Prime Minister, deputy from the Alternative bloc Ion Chicu said that “no one questions” the need to create reserves. “The question in the state is: why can’t we legally oblige (private businesses to create reserves) for 60 or 90 days? Why create additional structure? – asked Kiku.
Myca responded that the experience of other countries shows that a model based solely on private reserves does not work, and the EU directive requires a central authority responsible for holding reserves.
PCRM MP Inga Sibova asked why in the bill the contribution is calculated without VAT, since in this formulation the final tax burden for consumers will increase.
In response, Mytsa noted that this issue was discussed with the Ministry of Finance, and called the VAT increase itself “insignificant.”
Let us recall that in March Moldova faced the consequences of the crisis caused by the war in the Middle East. In particular, the cost of diesel fuel increased by 50% over the month, and fuel reserves during the period of active agricultural work decreased from 15 to 5 days of average daily consumption.
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