Companies in the oil industry sector have been working under conditions of strict fixed margins for 22 years, which could call into question their survival and development, the Association of Oil Companies of Montenegro (UNKCG) announced.
"Retail costs have been growing year after year, while on the other hand, companies in this sector have been operating under conditions of strict fixed margins for 22 years. "This is probably the only case in the world of this state's attitude towards this important industry, while keeping in mind that excise duty and value added tax (VAT) have been increased several times in this period," the UNKCG press release states.
As they stated, the margin of fuel in retail at this moment amounts to only a few percent per liter of fuel and in the mentioned period it is not at all aligned with the enormous growth of total costs.
"In this way, the possibility of survival and the necessary development of a large number of companies in this area is called into question. Therefore, it is necessary to urgently harmonize the accounting elements with the real growth of all costs, which is foreseen in the corresponding regulation, in order to preserve the energy sector and develop a free and competitive market", said the UNKCG.
The association, which gathers a large number of oil companies in Montenegro, adopted the annual work report and the plan for this year at the regular annual assembly.
"In addition, another member of the Board of Directors (BoD) was elected, and admission of new members to the membership was also noted. The members of the Association and the Management Board have defined future priorities and activities for the next period," the statement added.
The members of the Management Board assessed that this sector represents one of the healthiest parts of the Montenegrin economy, which, despite all the difficulties, still contributes the most to public finances.
"This is reflected in the orderly settlement of all taxes, excise duties, contributions and a large number of parafiscal levies that have been increased year after year, and further threaten the business of all companies in this branch, especially the retail sale of fuel at gas stations that employ a large number of people," they said. are from the Association.
UNKCG announced that they will focus special attention on the dialogue with the state in the part of changing numerous outdated practices and regulations, as well as in the part of providing services to all users, all in accordance with the practices and experiences of all countries of the European Union (EU) and the region.
"In turbulent times, when the entire economy in Montenegro and beyond has great difficulties in finding an adequate workforce, the state institutions were silent and in many respects did not show themselves to be good hosts, as for many years they did not adapt numerous legal solutions to modern economic conditions trends and practices of developed countries. The fact is that some regulations were drawn up 50 years ago, while the modern technologies used by businessmen have long since surpassed such legal solutions", warned the Association.
They believe that urgent changes are necessary, as well as an end to the wrong application of the law during decades of practice in that area.
"This will open up the possibility to use the labor force for more rational positions in companies, and not for those that have been replaced by self-service in EU countries for decades," the announcement states.
According to its representatives, the association will strive to work as soon as possible on the harmonization of numerous dysfunctional regulations and other acts that regulate this area in times of technological progress, the flourishing of artificial intelligence and other contemporary trends.
"It is necessary that our regulation and regulations follow EU standards, which would further facilitate business and raise the quality of all services in this sector to a much higher level. After all, we are a candidate country for EU membership, as well as a respectable tourist destination, and it is necessary to apply EU standards in this branch as well", said the UNKCG.
As they said, as before, the association will work together with all the progressive forces in Montenegro to abolish decades-long monopolies and possible privileged positions of certain entities, as well as to create equal conditions on the market, all in accordance with EU practice and standards. .
UNKCG indicated that the current conditions are more favorable on the oil derivatives market.
"We hope that these trends will continue, however, in very turbulent geopolitical and international economic relations, it is very difficult to make long-term projections, and therefore it is expected that uncertainty will continue in this market as well," the announcement concludes.
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