The government intervenes with the pipette in the fuel crisis. Energy expert: “It's a sham”
The working group for the management of the fuel crisis agreed on Thursday, April 2, the reduction of the diesel excise duty by 30 money. The decision is to be implemented through an Emergency Ordinance, most likely adopted on Friday. Eugenia Gușilov, energy expert, explained for “Adevărul” that the measure adopted by the executive is insufficient, considering the scale of the crisis facing Romania.
PHOTO: Mediafax
Following discussions with market operators, the authorities agreed on Thursday to reduce the excise duty on diesel fuel by 30 banis, against the background of the global fuel crisis.
“It will be applied a reduction in excise duty on diesel with 30 money per liter. At the same time, only one update of pump prices per day will be allowed. Following the discussions with the operators, it was concluded that other work options on the table would not have been applied uniformly and would have caused distortions in fuel supply. At the same time, establishing the solution took into account Romania's budgetary limitations”, it is stated in a press release sent by the Government on Thursday.
The sums needed to reduce excise duties for diesel purchased by farmers and transporters, as well as for the application of the reduction mechanism, will be provided from the additional VAT revenues generated by the increase in fuel prices, from the overtaxation of profits resulting from the exploitation of Romanian crude oil and from the state budget.
The decision comes in the context in which the Government adopted an Emergency Ordinance last week that provides for capping the commercial surcharge for gasoline and diesel at the average level of 2025 for the entire chain, from refining to final sale, between April 1 and June 30, limiting exports of diesel and crude oil only with the approval of the authorities and sanctions of up to 10% of the turnover for non-compliance with the rules.
Energy expert: “It's a cosmetic measure”
The measure decided on Thursday, by which the excise duty on diesel fuel is to be reduced by 30 banis, which represents less than 3% of the price, is however insufficient to amplify the harmful effects of the fuel crisis, draws the attention of Eugenia Gușilov, an energy expert.
“30 money means a 10% reduction in the excise duty. The excise duty on diesel is 2.8 lei. You also say what impact 10% means, that is, the reduction of the excise duty by 10%? It is, I would say, a sham. I mean, in order not to be accused of not doing anything on the excise side, you reduced it by 10%. But, anyway, I saw scenarios, and at the end of last week they said that from 10% to 45%. After that, there were scenarios that 10% to 25% of the excise was to be reduced by 5% to 15%. So it is, how to say, a measure with a pipette. It's a cosmetic measure, so not much, and probably just so the government won't be accused of not doing anything on the excise side,” explained Eugenia Gușilov for “Adevărul”.
At the same time, the expert warns that the measure to limit the commercial addition, adopted last week, is applied unevenly due to the fact that some traders also have refining units.
“The commercial addition part, know that it will be applied unevenly. I mean, there were some reductions at the pump that we saw, they started to appear, but it's not the same everywhere. For some, yes, for others, no, because the cost structure differs. For those who are also producers, who also refine, versus those who bring the finished refined product and just market it. That's why we won't see an equal decrease for everyone.” attracted the attention of Eugenia Gușilov.
SNB: “Excise duties should return at least to the level of the end of 2025”
The National Trade Union Bloc welcomed the Government's decision, but requests the reduction of excise duties to the level recorded at the end of last year.
“The National Trade Union Bloc welcomes the Government's decision to reduce the excise duty on diesel fuel by 30 money/liter, a measure that will have an immediate positive impact on pump prices and, implicitly, on the costs borne by the population and the business environment. At the same time, we appreciate the fact that the Executive is adopting, even partially, a solution recommended by the National Bank since last week, namely the use of fiscal instruments – in particular the reduction of excise duties – instead of administrative interventions in the formation of prices. At the same time, we draw the attention of the Government that there are no reasons to invoke any budgetary losses as a result of this measure. The excise and VAT revenues have already exceeded the estimates on the basis of which the fuel prices have increased. In these conditions, it is natural that a part of these additional revenues should be returned to the real economy. We believe that the current excise duty reduction is a step in the right direction, but insufficient return at least to the level of the end of 2025, a measure that would generate a more consistent drop in prices and contribute to the stabilization of the economy”, sent the NBS.
