The liberalization of gas prices for domestic consumers will be postponed. Bolojan: The year 2027, when we will have overproduction of gas, would be more appropriate

“We have to take steps to remove the cap, but we also have to protect the citizens of Romania,” Prime Minister Ilie Bolojan said on Wednesday, referring to the price of natural gas. The head of the government specified that the year 2027, when an overproduction of gas is estimated, would be “a suitable time for liberalization”.

“It is important to increase our storage capacities, we will put pressure on Hidroelectrica. The Mintia and Iernut power plants will balance the national energy system and make use of the additional gas resource from the Black Sea from 2027. We propose to declare the Liberty plant in Galati an objective of strategic importance,” said Ilie Bolojan, in his first press conference held this year, at the Victoria Palace.

According to the prime minister, the price of natural gas will remain stable throughout the year.

“Another important aspect is the elimination of gas price capping, but also protecting Romanian citizens at the same time. However, we will have additional resources in the Black Sea, which should lead to a decrease in gas prices,” said Bolojan.

“This means that in 2027, when we will have overproduction of gas, it would be a more suitable year for liberalization. We therefore propose that until March 2027 there should be a transitional period with a regulated price for domestic consumers throughout the chain,” he continued.

“Being a difficult year, it is normal to take these measures, given that from 2027 we will have new gas resources, which should lead to a drop in gas prices. This means that 2027 would be a more suitable year to liberalize. Between April 1, 2026 and March 31, 2027, there should be a period with a capped price for domestic consumers,” said the head of government.

“The price will remain stable throughout the year and there will be no other changes. The price of gas will be capped for household consumers and CETs. There will be no cap for other activities,” the prime minister added.

“This is how we protect the population and eliminate the problems of the past years when capping schemes allowed some traders to increase the price, and the state still has debts,” Bolojan said.

Notice of the Competition Council

The Competition Council recently recommended to the Government the liberalization of the gas market at the current deadline, March 31. A new extension of the ceiling is not necessary, since the prices in the market have dropped to the level before the Russian invasion of Ukraine, said Bogdan Chirițoiu, the president of the Council.

In addition, Romgaz will soon enter the supply market to domestic consumers, which will lower prices throughout the market, just as Hidroelectrica did with electricity tariffs.

“In 2026 we will have liberalization of the gas market, at least this is our recommendation, not to extend the current capping measure”, Chirițoiu said, on Monday, in a press conference.

“Romgaz is preparing to enter the supply market, and this is a good thing. As Hidroelectrica did, which put competitive pressure on other electricity suppliers, we also expect Romgaz to exert pressure on the gas supplier market and see prices drop,” he added.

In 2022, the gas price for Romanian consumers was capped until March 31, 2025. Later, the term was extended until March 31, 2026.

The Government's Plan B

On the other hand, the Ministry of Energy is working on a plan B regarding the liberalization of the gas market, scheduled for April 1, 2026.

If the prices will increase more than the ceiling that is currently, the ministry is considering a calendar of gradual liberalization that also includes the winter of 2026-2027, said the relevant minister, Bogdan Ivan.

“From the predictions we have, we do not see an increase in the price of gas after March 31, 2026. Even now there are operators who supply below the price capped by law,” Ivan said on January 8.

Gases for domestic consumers / Source: MaddyZ | Dreamstime.com