AmCham demands cessation of price control in the fuel market

Prishtina, May 24, 2024 – The American Chamber of Commerce in Kosovo expresses its concern regarding the prolonged intervention by the Ministry of Industry, Trade and Enterprise of the Republic of Kosovo in the market for oil products and renewable fuels.

AmCham believes that the price setting of oil products directly violates the principles of a free market economy, adversely affecting the operations of companies trading in oil fuels, and ultimately threatening their economic viability. Such interventions pose several risks to private sector companies, including: Financial Instability, Market Distortion, Reduced Competitiveness, Supply Chain Disruptions, and Legal and Regulatory Risks.

AmCham considers the Ministry’s interpretation of Law no. 08/L-018 on Trade in Oil Products and Renewable Fuels to be erroneous, particularly regarding the provisions of the Administrative Instruction. It assesses that none of the cases mentioned under Article 15 of the Law continue to be applicable.

AmCham reminds the highest officials of the Ministry of Industry, Trade and Enterprise (MIET) that a market economy with free competition is the foundation of economic regulation in the Republic of Kosovo. In its evaluation of the constitutionality of a similar legal act, specifically Law no. 08/L-179 on Temporary Measures of Basic Products in Special Cases of Market Destabilization, the Constitutional Court found that the provisions of this Law were not in accordance with the highest legal act of the Republic of Kosovo, declaring it invalid in its entirety.

Based on these conclusions, the American Chamber of Commerce in Kosovo calls on the Ministry of Industry, Trade and Enterprise and the Government of the Republic of Kosovo to immediately revoke the decision on the setting of oil prices. This action would demonstrate a commitment to respecting the Constitution, promoting the rule of law, and avoiding interventionist tendencies in the free market economy, thereby mitigating the risks faced by private sector companies and fostering a more stable and competitive business environment.