The Government's plan to stop the rise in fuel prices: there are five scenarios to keep the price below 10 lei per liter
The price of fuel could be limited below the threshold of 10 lei per liter, if the Government decides to temporarily reduce some taxes and excises. The Minister of Energy, Bogdan Ivan, said that the Executive is analyzing five scenarios regarding the evolution of the oil market, and a decision could be taken as early as next week.
The Government's plan to stop rising fuel prices PHOTO: Shutterstock
The Minister of Energy, Bogdan Ivan, announced on Antena 3 CNN that the Government has prepared several intervention options to avoid a sharp increase in gasoline and diesel prices. According to him, the scenarios take into account the evolution of the conflict in the Middle East and the impact on the oil market.
“The state has 5 scenarios on the table depending on how these developments continue. I also presented them to the Minister of Finance and I also discussed with the prime minister and we are going to intervene depending on how the situation evolves”said Bogdan Ivan.
The minister drew attention to the fact that the oil market is going through an extremely tense period. “Today we have the largest weekly increase in a barrel of oil since 1983, since data has been collected on this market. It is obvious that this trend will follow. It is obvious that the military altercations in the Middle East are not stopping yet, which means that we will have to intervene. We have mechanisms to intervene from next week”he said.
Decision expected next week
Bogdan Ivan believes that a decision must be taken quickly to prevent exceeding the threshold of 10 lei per liter at the pump.
“We are already determined to activate various mechanisms that will do everything possible to ensure that we do not reach a double-digit amount at the pump. We have several scenarios, tomorrow they will be discussed very closely together with the Minister of Finance, precisely in order to carry out these scenarios in the 2026 budget. I think next week we will have to make this decision“, explained the minister.
One of the options analyzed involves the temporary reduction of some taxes and excises, which represent the largest part of the final price of fuels.
“These scenarios assume that the state will reduce part of its revenues, that is, reduce excises and taxes that make up almost 70% of the final price of fuels, for a limited period of time until we return to normal after this conflict in the Middle East is over,” Ivan specified.
Increases in Romania, lower than in other countries
The minister also stated that, in the last week, fuel prices in Romania were lower than in other European countries.
“There are countries where we have an increase of up to 1 lei, 1.5 lei, under 1 lei. We are somewhere at 40 paise more for standard diesel and standard petrol, compared to other states, thanks to our direct intervention, both supply routes and in the area of combating the abusive and unjustified increase in prices, the specula that took place three, five years ago. I can give you the very clear examples that come from Germany, where it increased by 1 lei, in Italy it increased by 1.5 lei, in Spain by 0.46 money”said the Minister of Energy.
Diesel could reach 10 lei first
In the last five years, in Romania, excise duties and VAT have increased faster than the price of crude oil. At the same time, the country imported less and less crude oil and more and more diesel, which means that the local market is strongly influenced by the developments in the European markets.
Previously, the Minister of Energy admitted that developments in the Middle East can directly influence the Romanian market. The price of gasoline and diesel could increase significantly in the coming period, and the scenario of a tariff of 10 lei per liter is no longer excluded.
Currently, the state is the main beneficiary of fuel prices, collecting about 69% of what motorists pay at the pump.
