The government of Romania deferred from Tuesday, March 24, to the evening of Wednesday or even Thursday the approval of the emergency ordinance on introducing a state of emergency to regulate the fuel prices, prime minister Ilie Bolojan announced, according to Economica.net. While he confirmed prior information regarding the lack of consultative reviews from the Economic and Social Council (CES), the document is reportedly subject to important final touches.

"Amidst the discussions related to fuel prices, we prepared this first draft ordinance and today the CES, which is a body that must approve this type of project, postponed the pronouncement of a decision - they must give an opinion, whether it is favorable or unfavorable - requesting us to hold a meeting in a Tripartite Council, in which the employers' associations should also participate", stated Ilie Bolojan.

The refineries will be excluded from the scope of the price markup control, according to the latest version of the ordinance consulted by Economica.net. According to the new form, the price markup control (cut) will only apply to fuel distributors and retailers. 

Other amendments may be considered, such as reducing taxation (VAT, excise duties) or targeted support for key segments, according to comments from deputy prime minister Tanczos Barna on Digi24. However, such interventions are constrained by Romania's fiscal constraints and will most likely be targeted. 

The price markup restriction, which is the main provision of the emergency ordinance, caps the price markup expressed in nominal terms (as opposed to a percentage) to 50% of the average markup charged over a 2-month reference period. 

The provision would have resulted in two wholesale prices: for the fuels imported and produced locally, according to those supporting the last-minute amendment that eliminates the refineries from among the subjects of the ordinance. The ordinance has also been criticised for the negative impact it would have on smaller operators and for the side effects on other prices.

iulian@romania-insider.com

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