While fuel prices rise, authorities see no reason for market control

SARAJEVO, (Patria) - In 2018, there have been three increases in the prices of oil and oil derivatives in BiH: on February 1st by 20 to 25 feninga, on April 16th by five feninga, and on May 7th by 5 to 10 feninga. Another price increase is imminent. Mirsad Isaković (SBB), a member of the House of Representatives of the PSBiH, warned about this worrying fact, pointing out that in three months, oil and oil derivatives have increased in price by an average of 40 feninga.

- It is known that price formation in BiH is free, so oil distributors and traders adjust prices to the world market themselves. Aware of the situation, I warn that such price increases will surely have a chain reaction with increased transportation services and food prices, which would be a blow to citizens' budgets. That is why I ask what the Council of Ministers of BiH and the competent entity institutions have done to protect citizens from such blows – Isaković said, writes the Patria agency.

Mirko Šarović, Minister of Foreign Trade and Economic Relations, said that as a ministry, they sent an inquiry to the relevant entity ministries to check the retail margins of oil distributors and the possibilities to partially mitigate the announced price increases by shifting some of the burden of oil price increases to distributors, not just citizens.

- Unfortunately, the answer we received indicates that price formation is free according to market conditions, with indirect taxes, customs duties, excise taxes, road tolls, and VAT being calculated in accordance with the relevant regulations that govern their amount and calculation. Oil is a commodity whose price also depends on other factors, and there are practically no legal restrictions on the amounts of retail margins – the Ministry stated.

The Federal Ministry of Trade is of the opinion that the reasons for prescribing measures of immediate price control related to the possible legal limitation of the retail network of oil derivative distributors have not occurred.

Since February 1st, citizens have been witnessing the negative effects of the adoption of the Excise Law, which is most felt by citizens who now pay 2.15 – 2.16 KM for fuel, which consequently led to an increase in the price of cereals and other food items.

Money collected from road tolls after the adoption of the Excise Law has not yet been allocated or distributed because there is no agreement on how much of these funds belongs to Republika Srpska and how much to the Federation.