"The actual retail price will exceed the objectively calculated price by more than 3%," – claims the Ministry of Economy.
It is extremely difficult to comment on the absurdity of the situation when a law is planned to be adopted that lacks a mechanism for determining the 'objectively calculated price,' comments fuel expert Alexey Shvedov.
The initial and currently the only option for further regulation of the fuel market — the mechanism of indicative price and solidarity payment — was based on exchange quotations, rather than physical market quotations (Platts), which is already fundamentally erroneous.
Market participants have justifiably criticized this mechanism; however, no new mechanism for discussion and comments has been proposed. The authors of the bill decided to take the simplest route — to adopt the law without a specific mechanism for determining the 'objectively calculated price.'
It is assumed that such a mechanism will appear only after the law is adopted; however, its objectivity cannot even be assessed, as it does not yet exist.
It is unclear on what criteria the members of the Saeima plan to adopt this law if it lacks a clearly defined, unambiguous, and contradiction-excluding mechanism for calculating the 'objective price.'
It is also unclear how a fiscal regulatory act can be adopted at all without a mechanism that is its foundation. Absurd, the expert concluded.
