Moldovan PM government cannot influence 60 per cent of gas tariff, there is room for optimization for remaining 40 per cent

Prime Minister Vasile Tofan supports citizens’ right to protest against a potential increase in natural gas tariffs, but urges them to also focus on identifying solutions to reduce costs.

According to the prime minister, approximately 60 per cent of the gas tariff cannot be influenced by the authorities, as it represents the cost of gas purchased on the exchange. By contrast, the remaining roughly 40 per cent of the tariff is related to supply and distribution, areas in which the government believes there is room for optimization.

“I support people’s right to protest, but at the same time, I want all of us to have an  as constructive focus as possible of identifying solutions. I agree that there is room for improvement regarding part of the tariff. In simple terms – we cannot influence about 60 per cent of the tariff in any way, because it is the gas paid for on the exchange, but the other 40 per cent, which covers distribution and supply, there we are also insisting on greater transparency and on optimization potential,” the prime minister noted.

Vasile Tofan said that Energy Minister Dorin Junghietu had taken an open approach in discussions on reducing costs and specified that the government was requesting a review of the supply and distribution component. Tofan criticized the large number of regional structures at Moldovagaz and suggested that they could be streamlined.

“As a Moldovan, and I’m saying this not necessarily as prime minister, I also have a problem with the fact that, for example, at Moldovagaz we have 12 regional gas distribution companies, 12 directors, 12 drivers, 12 secretaries, 12 chief engineers, 12 accountants. I believe there is room for improvement there as well,” Vasile Tofan said.

The prime minister stressed that the authorities must look for solutions to reduce internal costs, given that the price of gas on international markets cannot be controlled by Moldova.

More opposition parties protested outside the parliament building during today’s plenary meeting, expressing their dissatisfaction with a possible increase in natural gas tariffs. Among the parties that took part in the action, there were the Party of Socialists of Moldova (PSRM), Democracy at Home Party and Our Party. The protesters called on the authorities to drop the tariff increase and criticized the government’s energy policies.

Parliament Speaker Igor Grosu said that the final price of gas is influenced by quotations on international markets, but that there are also internal costs on which the authorities can intervene. Grosu noted that the opposition has the right to protest, but should also present solutions to reduce costs in the gas sector. The speaker referred to a draft law on restructuring the company Moldovagaz and emphasized that he was expecting proposals, including from opposition representatives who had previously worked at this company.