Emergency Session of the FBiH Government: Cessation of direct control over oil derivative prices

SARAJEVO, (Patria) - The Government of the Federation of BiH, at today's 178th emergency, telephonically held session, amended the Decision on measures of direct control of certain products and services of interest to the Federation of Bosnia and Herzegovina, which repeals the decision on determining trade margins (calculative prices) for oil derivatives. As stated in the explanation, the Government of the Federation of BiH, at its session held on April 9, 2020, adopted the Decision on amending the Decision on measures of direct control of certain products and services of interest to the Federation of BiH, and the amendment related to determining trade margins (calculative prices) for oil derivatives. The goal of adopting this amendment to the Decision was to intervene in the oil derivatives market in FBiH in a timely manner during the declared state of emergency due to the COVID-19 pandemic and to prevent speculative and irresponsible behavior of all participants in the oil derivatives supply chain. 

The Government of FBiH abolished the state of natural disaster in the Federation of BiH on May 29, 2020. Given that the supply and demand relations and price movements of this energy source have stabilized, both entities, in coordination, have prepared appropriate regulations that abolish the measure of direct price control of determining trade margins (calculative prices) for oil derivatives.

A Decision on the cessation of the Decision on prescribing measures of direct price control was also adopted, which prescribed a maximum wholesale margin of 0.06 KM per liter of derivative for economic entities engaged in wholesale trade of oil derivatives, and 0.25 KM per liter of derivative for economic entities engaged in retail trade.

The Federal Government accepted the information regarding the letter from the European Commissioner for Neighborhood and Enlargement concerning the preparation of the Economic and Investment Plan for the Western Balkans by the European Commission, which aims to provide long-term support for economic recovery, improve competitiveness, bring the region closer to the European Union, and strengthen regional connectivity, in the context of mitigating the consequences of the crisis caused by the spread of the COVID-19 pandemic and recovery efforts, as well as further improving the quality of life of citizens and improving the investment climate and European perspective.  The Prime Minister of the Federation of BiH is tasked with sending a letter to the Council of Ministers of BiH, in which he will submit a list of priority projects, compiled taking into account the parameters stated in the letter from the European Commissioner for Neighborhood and Enlargement Oliver Varhelyi.

In accordance with the recommendation, the Government of FBiH proposed a list of priority projects for consideration, which includes the Brčko - Tuzla - Živinice expressway, as part of regional transport connectivity and connectivity with the EU, the Lašva - Travnik - Jajce expressway, as the first phase of connectivity with the EU, the Mostar - Široki Brijeg - Croatia expressway, as connectivity with the EU, the Vareš - Banovići railway, as part of regional transport connectivity, the rehabilitation and electrification of the Doboj - Tuzla - Zvornik railway, as part of regional railway connectivity, and the Travnik - Zagvozd gas pipeline, connecting to the EU gas network.