Ilie Bolojan: “Reducing fuel taxes is on the table.” The conditions under which the Government will take this decision
Ilie Bolojan stated to Euronews that he does not rule out that his government will reduce fuel taxes, but only under certain conditions. The prime minister said a new set of measures on fuel prices could be adopted later this month.
Invited to explain how the postponement of the meeting in which the emergency ordinance regarding the declaration of the state of crisis in the energy sector was to be adopted, Prime Minister Ilie Bolojan said that in the Economic and Social Council “a reservation” from employers was mentioned.
“Reserve” from patronages
For this reason, a meeting of the Tripartite Council (government-employers-unions) will be organized on Wednesday at 11.00 a.m., followed at 12.30 p.m. by the CES meeting in which the GEO project will be approved so that the Government adopts the normative act on Wednesday afternoon or, at the latest, on Thursday.
“There was a discussion related to one of the points limiting fuel surcharges which are proposed to be halved compared to 2025. A surcharge reduction is perfectly acceptable where the chains are integrated, from the refinery to the gas station. Where there are traders who buy the finished product, their markup margin is not very high, and the reduction could put them in a situation where they could not cover their costs. At some stations gasoline, the independents, could lead to a shortage,” explained Bolojan.
“No additional collected money will remain in the state's piggy bank”
He said that, regarding fuel price increases, all parties will have to bear part of the costs: citizens, producers, but also the Romanian state.
“He will assume his part of the contribution and no additional money collected will remain in the piggy bank of the Romanian state. Not that we don't need this money, but this cost must be shared. No state can keep prices at an unaffected level. The citizens will pay a price, the state will also pay, everything it collected additionally and more than that,” said the prime minister.
He said that, until now, the state could not intervene with an excise tax reduction, as long as the fuel market has not stabilized, and the consequences of such a reduction cannot be calculated.
“This first package allows us to create the general conditions to intervene in the market. The market is still volatile, a combination of the price of fuel in stock, so a lower price, plus imported fuel now at a higher price (…) When you have turbulence, think what would happen if we reduced taxes and people would still see increases. The scenario of reducing taxes is on the table, it's a second step”, stated Ilie Bolojan.
Bolojan is waiting for a stabilization of the market
He added that in the last days of March it is possible to adopt a new set of measures in addition to the one already announced, but on the condition that the oil and its derivatives market stabilizes.
In the first project, we ensure the security of supply, banning exports, especially of diesel
“When we intervene, the citizen sees that an intervention has been made (…) It is inevitable that prices have increased, the war has led us to this situation. I reject any idea that the Government can intervene, but it does not intervene because it collects taxes”, claims the head of the Executive.
Asked if the ban on fuel exports will also apply to the Republic of Moldova, Bolojan said that the draft GEO refers only to the possibility of establishing this ban. He showed that Romania exports gasoline and that the contracts will be respected, if there are no major disruptions to the supply chains. On the other hand, our country is an importer of diesel fuel, which accounts for 70% of fuel consumption.
