PKCG wrote to Spajić: Withdraw amendments proposing mandatory labeling of petroleum products

The Ministry of Fuel and Energy of Montenegro points out that fuel labeling is not an obligation arising from the EU accession process, that is, there is no directive imposing this on a future member state.

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Drakić, Photo: Luka Zeković
Drakić, Photo: Luka Zeković
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

The Chamber of Commerce of Montenegro (PCCG) has sent a letter to Prime Minister Milojko Spajić and the Parliament of Montenegro requesting that the amendments to the Law on Energy, which propose the introduction of the obligation to label petroleum products, be withdrawn from the procedure.

"The members of the Group, representing the entire oil business of Montenegro, unanimously concluded that it is necessary to withdraw the adopted amendments to the Energy Law Proposal from further procedure. This is because the amendments to the Energy Law Proposal introduced a completely new chapter on the marking of liquid fuels of petroleum origin and biofuels. This was done without the involvement of representatives of the economy in this process. We remind you that during the public debate on the Energy Law Proposal, businessmen unanimously and clearly expressed a negative position regarding marking, and it is not clear how the Government should act in an amendment and add an entire chapter with new charges to the Law Proposal without a clear explanation in its text," the letter signed by the President of the Chamber of Commerce and Industry of Montenegro Nina Drakić stated.

The letter states that the amendments do not contain a detailed explanation of the need for fuel labeling, and that there is no analysis of the economic impact and costs for the economy, or analysis of potential negative consequences.

"Also, the explanation that appeared in the media that this will put a stop to illegal trade and improve fuel quality is unfounded, since no evidence of illegal fuel trade by importers has been presented. Indicators for 2024 show that excise duty collection increased by 12,3% compared to 2023, which clearly indicates that there are no deviant phenomena, i.e. illegal imports. By reviewing the records of the Customs Administration, it is easy to determine that there are no recorded violations of quality standards by importers, but that the quality of fuel in Montenegro is at an enviable level, so the justification for marking in order to improve quality is questioned," the letter states.

It is also stated that it is important to point out that fuel labeling is not an obligation arising from the process of accession to the European Union (EU), that is, there is no directive imposing it on a future member state.

"Only Serbia has introduced fuel marking, while in Croatia there is only fuel marking for heating, agriculture, and maritime transport due to lower excise duties. Businessmen specifically point out that the proposal of these amendments to the Energy Law Bill completely ignores the negative consequences on fuel imports by road, which make up a significant part of total imports, since they will significantly complicate logistics, increase costs, and reduce competitiveness. The proposed changes will increase import costs and slow down the process, creating unnecessary barriers, especially during the summer season. In accordance with the above, as well as the facts that the introduction of fuel marking would create significant logistical confusion with unpredictable consequences and an increase in fuel prices that would directly affect the standard of living of citizens, the Group of Oil and Petroleum Products Distributors proposes withdrawing the amendments to the Energy Law Bill from further procedure. Also, the representatives of the Group express their readiness for direct talks with representatives of decision-makers in order to present arguments on all key issues that confirm their proposal regarding this legal solution," the letter states.

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