Romania cuts diesel excise duty by 20% under new price mechanism

Romania's Ministry of Finance will cut the excise duty on standard diesel by 20% from August 16 to August 31, following a rise in international diesel quotations and domestic pump prices, the ministry said.

The temporary reduction amounts to RON 561 per 1,000 litres, bringing the applicable excise duty to RON 2,243 per 1,000 litres, or RON 2,655 per tonne. The measure is being implemented under Law No. 162/2026, which introduced a mechanism allowing excise duties to be adjusted temporarily in response to fuel market developments.

The ministry said Platts diesel quotations increased by 34.13% during the reference period, while the average pump price of standard diesel rose by 23.01%.

"We built this mechanism precisely so that the state can intervene quickly and in a targeted manner when market developments require it, without fixed fiscal measures that would produce budgetary effects regardless of the real conditions," Finance Minister Alexandru Nazare said.

"Under these conditions, the mechanism is activated, and the excise duty decreases by 20%. It is a temporary intervention, calibrated to market developments, through which we reduce the pressure on the population and companies, while maintaining control over the budgetary impact," Nazare said.

The mechanism introduced by Law No. 162/2026 provides for an assessment of fuel market indicators every two weeks, allowing the excise duty to be adjusted temporarily when specified conditions are met.

The ministry said the reduction is intended to limit the impact of higher international fuel prices on consumers and businesses, particularly in transport and logistics, where diesel costs feed into a broad range of goods and services.

The level of the intervention will be reassessed every two weeks in line with the provisions of the law, according to the ministry.

(Photo: George Calin/ Inquam Photos)