The government extends the ceiling on gas prices for the population. What happens to electricity?
The government has decided to extend the capping of gas prices for domestic consumers until the spring of next year. Prime Minister Ilie Bolojan explained that the measure is necessary for economic stability and to limit the effects of turbulence on the global energy markets.
The government maintains gas prices for the population PHOTO: Inquam photos/ George Călin
“Several normative acts have been adopted, some with a general impact on all citizens of our country, such as the emergency ordinance that maintains gas prices this year until next spring”said the prime minister.
In the same meeting, the Executive also approved a project on the reform of the National Forest Management. “The second project with a sectoral incidence concerns the reform of Romsilva and, with the approval of this project, I am convinced that the necessary conditions are created to improve the activity of this important royalty in Romania“, said Bolojan.
At the same time, the Government adopted a memorandum to finalize a payment request from the National Recovery and Resilience Plan. “We have adopted a memorandum and the last steps to finalize the payment request of more than 2 billion euros that we have under analysis at the moment, so that we can absorb the European funds this year and complete the PNRR in good conditions by the end of August”the prime minister specified.
Why the price cap was maintained
According to Ilie Bolojan, maintaining the ceiling is justified both by the situation of the domestic market and the international context. “Today, two thirds of our gas consumption is provided by domestic production and one third by imports”the prime minister explained.
Another reason is economic stability, in the context of efforts to reduce inflation. “One of the targets we have assumed is the lowering of the inflation rate and any price increase that comes in the energy area means an important impact that has effects related to inflationary effects“, he said.
The Prime Minister also referred to the tensions in the Middle East, which can influence the energy markets. “Even if the European Union or Romania are not dependent to a very large extent on the supply from the area, the prices on these markets are formed at a global level and there are marginal effects on us as well“, Bolojan pointed out.
Plan to reduce electricity prices
The government is also preparing a plan to lower electricity prices, which would be presented by the end of March. “This decrease cannot be done overnight, but there are some important directions that we have discussed and that we will work on in such a way that we can have effects starting this year.”said the prime minister.
Among the measures under review are unlocking network capacities for new investments, increasing energy storage capacities and accelerating energy projects.
Finally, Ilie Bolojan emphasized that energy remains an essential sector for the economy. “Without energy that is secured for businesses and citizens at better prices, we cannot think of a real economic recovery in the coming years“, the prime minister concluded.
