EXCLUSIVE: Romanian Tax Auth To Verify Oil Cos Financial Reports

„We will also verify whether the profits have been transferred abroad,” Government sources told MEDIAFAX Tuesday.

The verifications will begin at the request of Prime Minister Emil Boc.

The Government’s report analyzing the producers and distributors of gas and diesel shows that almost all the local oil companies reported significant losses for 2010 and their real profits were not reflected accordingly.

The main companies selling fuel in Romania are OMV Petrom (SNP.RO), Rompetrol, LukOil, MOL and OMV.

Pump prices increased by around 20% in Romania last year.

According to the report, local fuel companies have groundlessly increased pump prices in 2010, even though production and distribution costs remained almost the same (except for the VAT growth from 19% to 24%). In consequence, this situation should generate much higher profits for the companies, and, thus, higher taxes per profit, says the document obtained by MEDIAFAX.

OMV Petrom, owned by Austrian group OMV, was the only company estimating higher profit for 2010, respectively 1.709 billion lei (EUR1=RON4.2619), double compared with RON860 million in 2009.

The check-ups were started by the authorities early January, as drivers staged protests across the country over fuel prices.