The Minister of Energy does not know what effects the measures announced by the Government will have at the pump. “There's another script on the prime minister's table. I'm waiting for a decision”
The government decided on Monday morning to declare a fuel supply crisis and take measures such as limiting trade margins, banning exports and waiving the percentage of biofuels. After the Executive's announcement, the Minister of Energy, Bogdan Ivan, organized a press conference at the PSD headquarters where, when asked by journalists what impact these measures will have at the pump, he failed to give a concrete answer.
“At the moment, all these measures have the role of stabilizing, but they cannot change the international dynamics of prices. The measures will have an impact of protecting the market and limiting the negative impact. If you want a definite figure, it would not be… To come back, so far we have proposed a wider set of measures that have been analyzed. Now we have a set of measures that we will adopt and we have another set of measures that, from my point of view, must be taken immediately.”
Ivan was asked when we will see the effect of these measures at the pump:
“I told you. The package we brought to the Government's table is much more complex. As soon as a large part of the proposed measures will be taken, the effect will be seen at the pump”, the minister said.
Further, the journalists asked him if he can give assurances that the price will decrease with the implementation of these measures. “No,” Ivan replied.
“It can go down by a certain amount while the price of oil and diesel goes up and covers that drop. It would be downright impossible for me to be able to guess how the increase in the international price of a barrel of oil can be in the next hours or days, I don't have a crystal ball. These measures limit the negative impact.”
The VAT reduction scenario is on the prime minister's table
Asked why no action has been taken to bring down the price at the pump immediately, such as reducing VAT, Ivan said: “This scenario is on the table of the Prime Minister. I am waiting for an answer. I am waiting for a decision, as are all of us.”
The Minister also said that, in his opinion, all the money earned by the Government so far as a result of the oil crisis must return to the citizens, in one form or another.
“And this will obviously be decided in the next period by the Prime Minister of Romania”, Ivan said.
What measures does the Government want to adopt in Tuesday's meeting
The government will declare a crisis situation in the fuel sector, which will allow temporary protection measures to be introduced for an initial period of six months. They may be successively extended.
One of the main measures aims to limit the commercial surcharge for gasoline, diesel and the raw materials used in their production.
The cap will apply across the entire economic chain, from refining to final distribution, in a bid to temper rising pump prices.
The addition will be limited to 50% of the 2025 average.
Fuel export restrictions
The government also introduces a control mechanism on exports and intra-community deliveries of fuels.
At the same time, the amount of biofuel in gasoline will be reduced, which at the moment is 8% by volume.
The measures will be taken for an initial period of six months. They may be successively extended, depending on market developments, for intervals of no more than three months.
