RSS
Authorities contemplate formula to cap fuel prices
The authorities are contemplating a formula to cap fuel prices, depending on international contracts, and the Competition Council will publicly express an opinion in this respect after presenting it first to the Ministry of Economy and to the government, president of the Competition Council Bogdan Chiritioiu on Friday told a conference on the prospects of the institution.
'There have been talks on fuel prices during the meetings between the Ministry of Economy and oil companies. They discussed a formula that emerged from these contacts, it is a formula that is applied in some EU countries and in Croatia, that will also acquire EU membership. We must move so as to cap the price according to a formula related to international contracts. There are pros and cons, no decision was taken yet. We will present our opinion to the Ministry, the government, and then we will make it public. We would prefer to see a free market. We have to accept a principle, and if we decide to go this way, we will analyze the details,' said Bogdan Chiritoiu.
Energy sector has serious competition issues
The energy sector is a business area with serious competition issues and addressing them requires the Competition Council to cooperate with the regulatory authority, Competition Council president Bogdan Chiritoiu told a conference this Friday on the achievements and prospects of the institution.
'The area where I hope we would grow is that of energy, which now faces serious competition issues. This is not a highly competitive market. We have mostly state-owned energy producers. It is important for us to develop our relationship with the market regulator. I hope that we make progress this year, also with the help of the World Bank,' said Bogdan Chiritoiu.
Six oil companies top the rankings of the most severe fines imposed by the Competition Council since 1997, for having colluded to drive a particular type of gasoline off the market in 2011, with the fine amounting to over 891.7 million lei (200 million euros).
The Competition Council chairman also mentioned the market of financial services as an area with problems because of the high fees charged by the players.
'There are issues in the area of financial services too. The card fees are high in Romania. We are now looking to see what happening in Europe,' said Chiritoiu.
In 15 years of activity the Competition Council applied totaling more than 437.7 million euros for the violation of the relevant legislation.