Data point to low price elasticity of fuel demand in Romania

Fuel consumption in Romania increased in March and, to a lesser extent, in April despite a sharp rise in petrol and diesel prices, according to analysts at the Association for Intelligent Energy (AEI), cited by Mediafax, commenting on data from the National Institute of Statistics (INS). AEI analyst Dumitru Chisăliță said the figures indicate relatively low price elasticity of demand for road fuels in Romania.

While fuel demand has historically shown limited sensitivity to price changes, the stronger consumption recorded in March may also reflect a more immediate factor: motorists and businesses building up inventories ahead of anticipated price increases and concerns over supply conditions.