STUDY: Half of the Imported Diesel in Moldova is Sold Illegally

STUDY: Half of the Imported Diesel in Moldova is Sold Illegally
Photo: washcycle.com
by
20 July 2021 | 15:19

The expert in economic policies from IDIS Viitorul, Veaceslav Ioniță, stated that the gray market for the sale of petroleum products, especially diesel, is growing. According to the expert, oil companies currently sell almost half of diesel, about 46%, to various companies for their consumption, only that most of these quantities of diesel is not used for consumption, but is sold illegally with no license or authorization that would allow them to sell petroleum products.

”Currently, in Moldova, almost half of the imported diesel is illegally sold. While the state imposed to gas stations a whole series of restrictions and taxes, the street vendors of diesel, illegally and without any permissive act and not paying any taxes, sell almost half of the imported diesel,” writes the expert on his blog.

Illegal diesel sales market shares.
Photo: ionita.md

“In these schemes of illegal sale of petroleum products, some oil companies participate very actively, due to the lack of any control by the competent state authorities,” says Veaceslav Ioniță.

The economist also states that the total volume of the gray and illegal market for the sale of petroleum products exceeds 5 billion lei (236 million euros).

The budget loses from the illegal selling of diesel annually in millions of lei.
Photo: ionita.md

“Since 2015 until now, only diesel of over 20 billion lei (950 million euros) has been sold through these schemes. The failures of the national public budget for this illegal activity of trading petroleum products, without any permissive act, amount to 200 million lei (9.5 million euros) annually. Only for diesel, from 2015 to 2020, the failures of the public budget are about 800 million lei (38 million euros),” the expert claims.

The economic analyst is of the opinion that the liquidation of the illegal trade with petroleum products would allow the increase of the budget revenues by up to 200 million lei (9.5 million euros) annually and will reduce the price of the petroleum product.

“This is one of several emergency measures that would allow the authorities to bring order to the market for petroleum products, to create an appropriate legal and competitive framework that would ultimately lead to the formation of fair prices for all consumers,” says the economist Veaceslav Ioniță.

AUTHOR MAIL eng.zdg@gmail.com

 .

President Maia Sandu Met the President of the Swiss Confederation at the 76th Session of the UN General Assembly: “We discussed the negotiations on the free trade agreement with the EFTA countries”

President Maia Sandu, who is paying an official visit to New York, USA, on the first day of participation in the 76th session of the UN General Assembly, had a meeting with Guy Parmelin, President of the Swiss…
President Maia Sandu Met the President of the Swiss Confederation at the 76th Session of the UN General Assembly: “We discussed the negotiations on the free trade agreement with the EFTA countries”

The Moldovan Government and the Government of the United Kingdom Signed a Memorandum on the Return of Money from Luca Filat, son of former Prime Minister Vlad Filat, to Moldova

The British Ambassador to Moldova Steven Fisher and the Minister of Labor and Social Protection Marcel Spătari signed a Memorandum on the return of illicit funds of 458,068 pounds confiscated from Luca Filat by…
The Moldovan Government and the Government of the United Kingdom Signed a Memorandum on the Return of Money from Luca Filat, son of former Prime Minister Vlad Filat, to Moldova

Moldova and the Development Bank of Germany Signed an Additional Agreement Worth 2.77 Million Euros for the ”Clean water for Cahul” Project

The Moldovan Government, the municipality of Cahul District, and the Development Bank of Germany signed on Tuesday, September 21, an Additional Agreement for the implementation of the EU and Moldova: Clean wate…
Moldova and the Development Bank of Germany Signed an Additional Agreement Worth 2.77 Million Euros for the ”Clean water for Cahul” Project

Moldovan and Portuguese Ministers of Foreign Affairs met in New York

The Moldovan Minister of Foreign Affairs Nicu Popescu met Augusto Santos Silva, Minister of Foreign Affairs of the Portuguese Republic, at the 76th session of the United Nations General Assembly in New York. Th…
Moldovan and Portuguese Ministers of Foreign Affairs met in New York

President Maia Sandu Discussed in New York with the Secretary General of the United Nations, António Guterres

President Maia Sandu discussed in New York with the Secretary General of the United Nations, António Guterres, the challenges in “our country and our region.” ”We reaffirmed Moldova’s commitme…
President Maia Sandu Discussed in New York with the Secretary General of the United Nations, António Guterres

Moldova Convicted at ECtHR: The State Is to Pay 67,750 Euros for Moral Damages

The European Court of Human Rights issued a ruling on Tuesday, September 14, in the case of Petrenco and six other people against Moldova, recognizing the violation of several articles of the Convention by Mold…
Moldova Convicted at ECtHR: The State Is to Pay 67,750 Euros for Moral Damages