Fuel prices to increase in Romania after excise duty reduction ends

Diesel is set to become more expensive in Romania by more than 30 bani starting July 1, when the excise duty reduction measure expires.

The measure was introduced by the now-dismissed Ilie Bolojan government at the beginning of April to counter fuel price hikes caused by the war in Iran. Back then, the government also decided to reduce the solidarity contribution for companies in the energy sector, according to Biziday.

The two measures led to a reduction of RON 0.36 per liter (including VAT), as excise duty accounted for more than a quarter of the per-liter price. The excise duty reduction is set to expire on June 30, meaning prices will increase starting Wednesday, July 1.

The hike seems inevitable, since the current government, an interim one, cannot legally extend the measure.

On Monday, June 29, diesel cost RON 9.24 per liter. After the excise reduction expires, it is expected to exceed RON 9.5 per liter.

For the measure to continue, a new government must be formed, but discussions among parties and with president Nicușor Dan are at an impasse.

Meanwhile, oil prices have fallen on international markets following peace negotiations between the US and Iran.

Gas prices in Romania are already above the European average, while diesel prices are close to the median, according to data from the latest Weekly Oil Bulletin issued by the European Commission on June 11. Taken together, the figures show that Romania has some of the most expensive fuel prices in the Union.

At the level of the 27 states, the European weighted average reached EUR 1.82 per liter of gasoline and 1.83 for diesel. Romania recorded a price of EUR 1.823 per liter of gasoline. A few years ago, Romania was, alongside Bulgaria, the cheapest European fuel market.

(Photo source: Gabriel Petrescu|Dreamstime.com)