The government reduces the excise duty on diesel for farmers. What is the value of the state aid scheme
The government approved, on Thursday, a state aid scheme in the total amount of 620 million lei from the budget of the Ministry of Agriculture for the year 2026, to reduce the excise duty on diesel fuel used in agriculture, informs Agerpres.
“Government Decision to supplement Government Decision No. 1,174/2014 regarding the establishment of a state aid scheme for reducing the excise duty on diesel fuel used in agriculture. Through this normative act, the necessary financial resources are allocated to support mechanized works in the plant, animal husbandry and land improvement sectors, at the same time adapting the level of the subsidy to the current fiscal legislation”, the Government transmits in a press release.
Thus, the amount of 620,000,000 lei is allocated from the MADR budget for the year 2026.
These funds are intended to make payments for state aid related to the period July 2025 – December 2025.
For the year 2026, the excise tax difference that will be returned to farmers in the form of a refund is 2,697 lei/liter.
“The reduced excise duty rate was set at 106.72 lei/1,000 liters. This value represents the conversion into lei of the minimum tax rate of 21 euros/1,000 liters (calculated at the exchange rate of 5.0821 lei for 1 euro, established on October 1, 2025). The subsidy is granted as the difference between the standard excise duty level, provided by the Fiscal Code (2,804.29 lei/1,000 litres), and the reduced excise rate established for the agricultural sector. Payments will be processed through the Payments and Intervention Agency for Agriculture (APIA), within the limits of the approved budget”, says the Executive.
The measure was announced by Prime Minister Ilie Bolojan, a few days ago, after the Government had adopted a similar measure for carriers.
“We gave them a predictability until the end of the year, whereby, from the cost of the excise tax, we will bear not 65 money as before, but 85 money, with a quarterly assessment, so that, if things go in a bad direction, we can increase this compensation, if, at a certain point, the prices are reduced and come back annually, we can reduce the compensation. We will do this for farmers as well”, said the head of the Executive.
