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| The price of oil in Romania 27/01/2011 |
| (2011-01-27) |
| Last updated: 2011-01-28 14:27 EET |
The 20% rise was operated last year alone and drove common car-owners and transporters to despair, as the latter fear their own companies will go bankrupt. Drivers resorted to unprecedented protests, buying small amounts of gas or Diesel and using low-value coins to pay.
PM Emil Boc called on the National Fiscal Agency to begin general inspections at oil companies, to verify if incomes gained by oil price rises are reflected in the companies’ profit and, implicitly, in taxes and excises. The request comes after the National Fiscal Admnistration Agency took note of the fact that gas station prices saw an ungrounded rise in 2010. Almost all companies reported significant losses, and profits were not appropriately reflected.
Fiscal Authority head Marian Morcoasa does not rule out the idea that most oil companies have outsourced their profits:’Most companies report significant losses. Consequently, we intend to begin large-scale fiscal inspections, focusing on transfer prices, because there is the possibility for these companies to have outsourced their profit’’.
Number one gas producer Petrom, however insists that most fuel prices were exclusively determined by the rise in VAT, fluctuating international quotations on these prices and the depreciation of the national currency leu as against the dollar. Petrom also puts the rise in prices down to the level of state-imposed taxes and excise prices.
PM Boc firmly rejects the accusation:’’This fuel increase has been said to be due to the fiscal burden that the government placed on the shoulders of Petrom and other companies. The analyses carried out clearly show that tax volume in the fuel price in 2010 stood at 49.8%.’’
The Prime Minister had the Council of Competition launch an investigation into oil companies and asked for an additional analysis to see whether a monopoly practice has existed or not. The suspicion is legitimate, the Prime Minister says, given that all companies increased ful prices almost at the same time and in identical percentages.
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