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Is the Board helping to increase evasion ?!

2022-06-23 08:52:16Biznes SHKRUAR NGA REDAKSIA VOX

The fixing of fuel prices by the Transparency Board is creating consequences in the fuel market, from the bankruptcy of small companies, keeping prices artificially higher than they would be if operators were to maneuver themselves in the market and especially is leading to an evasion massive in districts, through lower declarations of quantities sold.

The first is the closure of small companies, which are failing to survive in the face of frequent price changes by the Board. The Association of Hydrocarbon Companies informed Monitor that 83 sales stations in the suburbs of Shkodra in Kukës, Pogradec, Dibër, etc. have already been closed. About 100 more drops are supplied once every three weeks and are barely surviving. These make up at least 10% of the total fuel points in the country.

The Association of Hydrocarbon Companies said that if this situation continues, the supply of oil from imports is endangered, as no one is negotiating a new contract. "The capital needed for work has tripled, the banks and international funds that cover the price of oil on the stock exchanges have increased costs, as with the market fluctuations the risk of bankruptcies has increased a lot and premiums have increased 3-4 times. "Our board does not recognize these or the many elements that are being applied over the Platz price, while distribution operators are playing for cents."

If the Board did not intervene, the prices would be 10-15 lek cheaper per liter

The Association of Hydrocarbon Companies says that if there were no intervention from the Board, prices today would be at least 10-15 lek per liter less than they are currently. "Companies have experience with prices and maneuver when it fluctuates at + - 150 - 200 $ / ton and if the price falls they will buy more, managing to average costs. "But with the interventions made today by the Board, which just sits on the Stock Exchange and lowers prices, everyone is closing only the daily needs, because it is still falling, the companies are coming out with a minus".

The association said that the operators expected the Board to be transparent about the price, indicating the cost of a liter of oil (Platz price in dollars, exchange rate, premium, national taxes, local taxes, operating expenses based on accounting documents), which according to them will to alleviate both speculation and clarify market paradoxes.

According to the last decision of the Board, dated June 18, the retail price of oil is 261 ALL per liter, close to the maximum record levels of 265 ALL per liter. Compared to the end of February, before the start of Russia's attacks on Ukraine, prices are 34% higher. The board was established in early March, after oil in the domestic market reached 235 lek per liter in the first days of the war.

Is the Board helping to increase evasion ?!

Is evasion increasing ?!

Market operators told Monitor that the fixing of prices by the Board is affecting the increase of fuel evasion, especially in the districts. According to one of the financiers of these companies, evasion is taking place with the declared quantities and in the districts this phenomenon is becoming massive.

According to the operators, the price change is bankrupting the little ones, that if they are in a high price situation and the Board reduces the price the next day, this is causing them to maneuver with the quantities declared at the pumps.

Bie consumption

For the entire 5-month period, oil imports fell by 6% and the whole phenomenon was concentrated in the last three months of March-May, after the start of the war in Ukraine.

According to official data from the Ministry of Finance, oil imports in May marked about 44 thousand tons, from more than 54 thousand tons in the same period of 2021, down 18%. This was the strongest decline compared to the previous two months.

Market operators claim that consumption is falling every day. The difference from Shkodra to Montenegro is almost one euro and many cars are supplied across the border (even with other border countries, except Greece, there are high price differences per liter of oil). Even weekend tourism is not affecting the increase of consumption, as everyone comes with full cans and expectations are low even for the summer season. Operators say that if oil were eased by taxes, at least for the three months of the summer, it would reduce prices, while the state would be able to compensate by increasing consumption, reducing evasion, while maintaining the countries of work at gas stations that with current conditions risk bankruptcy./Monitor


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