Measures to lower fuel and energy prices
Decision-makers are preparing a substantial set of measures to reduce gas and electricity prices and slow down inflation
Corina Cristea, 23.02.2022, 13:50
The leaders of the ruling coalition have agreed on new measures to lower natural gas and electricity bills and to help slow down the rise in inflation seen early this year.
A temporary 50% cut in the fuel excise is one of the measures prompted by the energy crunch. Data shows that in Romania, fuel costs account for 8% of the market basket, but for households with small and medium incomes the share may reach as much as 12%.
With this measure validated on Tuesday by the ruling coalition comprising the Social Democratic Party, the National Liberal Party and the Democratic Union of Ethnic Hungarians in Romania, the retail price of petrol and diesel is set to drop by more than RON 1 from around RON 7 per litre at present.
The measure was backed by the Social Democrats, whose leader Marcel Ciolacu says the move is designed to put a stop to price rises.
Marcel Ciolacu: “Weve seen the rise in oil prices but we are hoping to balance this by cutting the excise. We are thinking about the problems Romanians struggle with and about ways to stop this surge in prices.”
The Liberals agree in principle with lowering taxes, excises, contributions and anything that would help ease the fiscal burden, the Liberal leader Florin Cîţu said. He warned however that if retail prices fail to drop, someone must take responsibility.
Florin Cîţu: “Well see the figures from the finance ministry. I feel these scenarios are optimistic. I hope these measures are not just for the sake of the governments image, because they would cost RON 3-4 billion.”
By giving up half the petrol and diesel excise for the next 6 months, the government is giving up a share of budgetary revenues, while citizens and companies see their current costs reduced.
Talks will be held in the forthcoming period with the European Commission and major fuel suppliers to keep fuel prices at a manageable level for all household and corporate consumers, the finance minister Adrian Câciu said.
The ruling coalition also decided to introduce an emergency order in April, to offset and put a cap on electricity and natural gas bills. (A.M.P.)
