The Republic Market Inspection Service had increased inspections of price formation for liquid petroleum fuels in order to protect economic interests of citizens, combating unrealistic prices and potential unfair behaviour of traders.

So far 20 inspections have been conducted which involved formation of prices from the beginning of the year. In five cases inspectors found that the traders did not adhere to the Regulation limiting the profit margin in price formation of liquid petroleum fuels, for which they will be sanctioned in accordance with the law. This Regulation prescribed fines of BAM 10,000 if a trader as a company does not adhere to the prescribed profit margin, as well as a fine of BAM 5,000 for the responsible person in a company.

Also, in accordance with the provisions of the Law on Trade, traders have a duty to deliver to the Ministry the information on prices, changes in price of goods and services, stockpiles, profit margin and other data in order to initiate and monitor the effects of measures of economic policies in the area of market and trade. In three cases inspectors found that the traders did not deliver the data in a timely manner and they will be fined BAM 800 for the company and BAM 300 for the responsible person.

Considering the fact that there are 500 petrol stations in the Republic of Srpska, it is important for the consumers to know that inspections are conducted by examining of business documents of the traders, calculation of prices, issued receipts, and if the inspector did not manage to finish the inspection today, that does not mean that condition on that particular day will not be inspected. By inspecting the documents the inspector controls earlier time period, not only that particular day. In inspections conducted so far inspectors found that price corrections were conducted at the beginning of March.

The focus of inspections were businesses that a large number of petrol stations in their chain all over the Republic of Srpska, and in turn a large number consumers use their services, but smaller business will not be excluded.

The final retail price as a rule depends on the purchase price which is used to calculate a prescribed profit margin. The purchase price used as basis for calculating the profit margin includes the invoice price of the producer, or distributer, increased by dependant purchase expenses, such as customs duties, transport, storage, forwarding office expenses, etc. If the purchase price increased the final retail price will also be higher, however, the amounts of goods in stockpiles and that were procured earlier at lower prices, the profit margin is calculated based on the purchase price at the time.

The Republic of Srpska Market Inspection Service is working at full capacity and will continue their inspections. Inspection surveillance is a continuous work, and if one facility is inspected today that does not excluded it from being inspected again in a couple of days. The inspection service is going to continue to monitor the situation in the field in the coming time period and adjust its work as the situation requires, and business can expect inspectors any day.