The Association of Oil Companies (UNKCG) sent a letter to the members of the Parliamentary Committee for Economy and Finance, stating that in the proposal for the Law on Security of Supply of Petroleum Derivatives, which was adopted by the Government and sent to the Parliament for approval, there are several discriminatory provisions that will make it difficult or impossible to do business domestic small oil companies.
They state that they agree with the part of the law that stems from pre-accession obligations towards the EU and the Energy Community, as well as that the bill that was submitted to the Parliament is better than the initial proposal, but that there are still norms that create discrimination against small traders of oil derivatives and it gives the big ones the opportunity to further strengthen their privileged position.
This draft law defines that half of the future reserves of oil derivatives will be formed by the companies that are engaged in their import and trade, while the other half of the reserves would be provided by the State Administration for Hydrocarbons. The supply of reserves would be financed by a special fee of three cents per liter paid by all fuel buyers.
From the initial model, which was based on the fact that all strategic reserves should be formed by businessmen engaged in import and distribution, and one-third of them in physical form, we came to the Draft Law, which obliges the Hydrocarbons Administration to form one-half of the reserves, while businessmen will be obliged to form the other half, in the way they choose: either through a 'ticket' (document that he bought and owns that amount of oil deivat) or in physical form.
This association states that this draft law discriminates against traders who import up to 15.000 tons of petroleum products per year and those who import more than that threshold.
"Although we as an Association have repeatedly requested, both verbally and in writing, from the proposer of the law, i.e. of the Directorate for Oil and Gas, to amend this article of the Draft Law, and with the goal of an equal position of all participants in the market, it remained unchanged. Specifically, in Article 11, paragraph 1, it is defined: an importer who imports less than 15.000 tons of oil derivatives, unleaded motor gasoline and/or gas oils, is obliged to notify the Administration within 15 days of receiving the instructions from Article 10 of this law, for conclusion of the contract on the transfer of the obligation to form mandatory reserves for the period specified in the instruction. Businessmen who exceed the threshold of 15.000 tons of oil product imports have the opportunity to reserve 'tickets' for the amount of the provided compensation and thus fulfill their obligation to form reserves and thus achieve additional benefits from the application of such a law, even though declaratively the Bill is profitably neutral ", they stated from this association.
They believe that such a proposal will further strengthen foreign oil companies and large importers, which puts the rest of the businessmen in an unequal position. That is why they suggest that even small importers should be allowed to choose how they will secure their share of the oil reserves.
"The amendment proposal requested by the UNKCG is to amend Article 11 paragraph 1 and to replace the words 'is obliged to' with the words 'is able to'." Such an amendment would allow all market participants, regardless of size, to participate and contribute to the transparency and improvement of activities related to the application of this law. In addition, the amendment of this article would further strengthen competitiveness in terms of finding 'tickets', and would give a true picture of the value and cost of such a way of forming reserves, which would enable businessmen who import quantities of less than 15.000 tons to actively participate in part of the implementation. of such a law, while importers who do not have the capacity and opportunity to form reserves will transfer their obligation to the Administration, in accordance with the draft law", it was stated in the letter to the parliamentary committee.
They expect the deputies to consider their remarks and to include them in the draft law.
"Jugopetrol" will strengthen its monopoly position, it will weaken the competitiveness of the market
In the Bill itself, there are members who only formally figure in order to satisfy the form, while most of the activities under this law will be carried out by one company, which, due to its monopoly position, will exclusively be a participant in operations with storage, renewal (renewal) and delivery of oil derivatives. , and for the reason of the monopoly position, according to which this Association will be determined institutionally", they stated from UNKCG.
They believe that the adoption of such a proposal will affect the maintenance of the monopoly position and interests of only one company.
"'Jugopetrol' will gain the full capacity of monopolistic behavior by adopting the aforementioned Law, which will make the state of Cra Gora, from the energy aspect, even more dependent on the aforementioned entity, and in parallel will directly affect the standard of citizens and further weaken the competitiveness of the market, and with further application will call into question the survival small retail participants in the market. The latest behavior of the aforementioned participant, who selectively sells from the terminal in Bar during the period of the pronounced tourist season and increased need for oil derivatives, indicates that it is they who are behind the creation of such legal solutions, in which only they will be participants in public tenders, in the formal present the satisfaction of the law, and with clear and unique outcomes", it was stated in the letter sent to the deputies.
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