Romania’s ruling coalition abandons plans to cut excise duties on fuels

The plans to temporarily slash by half the excise duty on fuel, a measure that would have reduced the price of the fuels by roughly 15%, were postponed after the coalition failed to agree, sources within the ruling coalition contacted by daily Adevaruldisclosed.

The idea was confirmed by the Social Democrat (PSD) finance minister Adrian Caciu.

Liberal (PNL) leader Florin Citu, however, warned that the end-user price might actually not decline while the drop in revenues will certainly be substantial.

The reduction of the excise tax was initially announced for the first time on February 21 by the president of PSD, Marcel Ciolacu, who stated that the market intervention is needed, for a limited period.

Later, after the coalition meeting on Tuesday, February 22, the minister of finance, Adrian Câciu, confirmed that the coalition leaders agreed to reduce the excise tax on fuel by 50%.

In response, Liberal leader Florin Citu argued on Wednesday, February 23, that by reducing the excise duty on fuel, Romania risks a new infringement procedure if it doesn't take into account the decisions of the European Commission regarding the minimum excise threshold.

He also said that the minister of finance must be held responsible in case the measure fails to produce effects - meaning the end-user price fails to drop.

The Liberal president asked the coalition leaders not to announce any more economic measures before they are discussed in the coalition to not give false expectations to the Romanians.

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