LAWS TO WATCH: Oil and Petroleum Products Market Act

The proposed legislation repeals the ordinance by which the government had the authority to determine the highest retail price of petroleum products within a specific time period. In the future, pricing will be determined exclusively according to market conditions. Presently, the price is set pursuant to conditions prevailing in the Mediterranean market, exchange rate fluctuations, amount of premiums allocated to energy companies, and level of fees and taxes imposed by the government. Henceforth, private petrochemical companies will determine the price of petroleum products.

However, the government may, for a period of no longer than 90 days, set the highest retail case for certain petroleum products, in order to protect consumers or prevent market distortion.

Petroleum products traders will have to regularly submit data to the Ministry of Economy on the quantity, origin, and price of imported products, as well as information on the price of petroleum products before and after fees and excise taxes have been incorporated. The legislation also requires traders to establish operational oil stocks, which can last up to 15 days.

The Croatian Compulsory Oil Stocks Agency (HANDA) will be in charge of monitoring the formulation of prices and stock control…

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