The Association of Oil Companies yesterday unanimously adopted a decision against the implementation of fuel marking because it is contrary to European Union directives to mark all fuel, not just that which is exempt from duties, that markers that are not recognized by the EU have been chosen, that it is pointless to mark fuel on which duties have been paid, and that there are no conditions at border crossings for transferring fuel from tankers and pouring markers into it, "Vijesti" has learned.
In the coming days, they will again send appeals to abandon this work to state institutions and the office of the EU Delegation, which previously announced that the planned fuel labeling, prescribed by the Energy Law, is not in line with European directives with which candidate countries for membership must comply.
Last week, the government decided that the marking of all types and quantities of petroleum-based fuels and biofuels will be carried out by a consortium consisting of "Labex analytics" from Podgorica, "Inspekt RGH" Sarajevo, the Institute of Ferrous Metallurgy Nikšić, the "Institute for Transport" Podgorica, and "Autentix" from Texas.
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The decision states that the marking agreement will be signed for five years. Montenegro plans to become an EU member by the end of 2028, when it will have to adopt an EU directive that stipulates that only fuel that is exempt from excise duty or part of it (fuel for farmers, fishermen, transporters...) should be marked, and not all quantities as is currently intended in Montenegro.
The government claims that marking will prevent illegal fuel imports, although there is no evidence that such situations currently exist. This form of marking is only available in Serbia on the European continent, and its representatives participated as advisors in the drafting of these regulations for Montenegro.
The price of marking has also been set at 0,8 cents per liter. As the current turnover of these fuels to be marked amounts to over 400 million liters per year, this means that the consortium would generate annual revenue of at least 3,5 million euros, or around 17,5 million euros for a five-year contract period.
The consortium leader, the company "Labex analytics" from Podgorica, was founded in May last year, two months after the law introducing marking was adopted, and four months before the tender for the selection of the contractor who would perform the marking was announced.
The law stipulates that the cost of marking, which is less than a cent, will be borne by importers - oil companies. The current regulation on determining retail prices does not stipulate the cost of marking, and the relevant Ministry of Energy has announced its change. The regulation is from 2004 and it stipulates that fuel sellers receive about six cents per liter from the retail price, and this amount has not changed and has remained at the same level for 22 years. Montenegro would have free formation of fuel prices upon joining the European Union.
The Association of Oil Companies has been opposed to the proposed procedure for marking all types and quantities of fuel from the beginning because it is contrary to EU standards, technically not feasible, endangers safety, there is no point in marking fuel on which duties have been paid, it increases costs, undermines competitiveness... These reasons were also supported by the Chamber of Commerce, but the deputies nevertheless voted in favor of the controversial items in the law.
After its adoption, the EU Delegation in Podgorica confirmed that the traders were right, and the Government was wrong.
"The EU legal framework regarding fuel marking is established by Council Directive 95/60/EC on the fiscal marking of gas oils and kerosene, as well as by Commission Implementing Decision (EU) 2022/197 of 17 January 2022, establishing a common fiscal marker for gas oils and kerosene. Directive 95/60/EC obliges Member States to apply a fiscal marker to gas oil or kerosene that are exempt from excise duty or subject to a reduced rate of excise duty. Candidate countries are required to gradually align their legislation with the EU acquis, including in the area of excise duties, and must achieve full compliance by the time of accession," the EU Delegation told "Vijesti" at the time.
They also stated that the Government did not ask for their opinion on legal solutions related to fuel labeling.
The American company "Autentix" is a company that produces nano-particle markers, mainly for marking banknotes, but also for fuel. Their type of fuel marker that would be used in Montenegro is used in only five countries, namely Serbia, Congo, Mozambique, Botswana and Pakistan. The competition required that the bidder have markers that are used in at least five countries.
Driver to drive the tanker until the marker melts into the fuel
The marker is a substance the size of a nanoparticle (a millionth of a millimeter) and its presence can be determined in special laboratories. The Ministry previously stated that they will not harm the quality of the fuel and are not dangerous for vehicle engines.
The regulation stipulates that marking is carried out in warehouses in ports where fuel is unloaded from tankers, as well as at border crossings where it is transported by road in tankers. It is stated that upon arrival at the border, several fuel samples are taken from the tankers through the upper opening into special containers. In the containers, the fuel would be mixed with markers for that type of fuel, and then returned to the tanker “through the loading opening, or the opening for fuel quality control”. In the tankers, the fuel would be mixed again with special mixers, and then the percentage of markers would be checked. It is also stated that if it is not possible to insert this mixing device into the tanker, then the mixing would be done by driving, or rather the driver would drive the tanker from the border, “take a few laps” and return it to the border for marker control.
Oil traders have made a number of comments on the regulation. They believe that the planned procedure for pouring fuel into some containers at the border is contrary to safety regulations, and that newer tankers do not have the technical capabilities for such a procedure. They also point out that new tankers do not have openings through which marked fuel could be returned to the tanker from a container or bucket, because according to new EU standards they have hoses with a magnetic connection system and high-pressure pumps, so it is impossible to pour anything into it. The problem is that some oil traders have completely switched to new tankers that are now not adaptable to this regulation.
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