The government is considering new interventions in the fuel market, after the expiration of the price capping scheme and in the conditions where the price of diesel remains high, even though international oil prices have returned to levels before the Middle East conflict. At the same time, the Ministry of Agriculture wants to compensate the impact on farmers if the 30 bani per liter diesel excise tax reduction is not extended.
Prime Minister Ilie Bolojan announced on Thursday that the Executive, through the Ministry of Finance, has prepared a new diesel price capping scheme, which could be promoted in Parliament during an extraordinary session that could be convened in mid-July. The statements come after Wednesday’s consultations between the Government and the main operators in the fuel market.
Bolojan: Prices should start to decrease
The Prime Minister explained that after the end of military conflicts in the Gulf, the price of a barrel of oil returned to pre-conflict values, but this has not yet been reflected in the diesel price.
According to Bolojan, companies are currently selling fuels purchased about two weeks ago when prices were higher. As these stocks are depleted, products purchased at lower prices should enter the market.
"Starting these days, gradually, we will see a decrease in fuel prices, which in the second half of July should approach the prices that were in the market before March," said the Prime Minister, according to News.ro.
However, he specified that if this trend does not materialize and diesel remains significantly more expensive, the government is prepared to intervene again.
"The government, through the Ministry of Finance, has worked on a new capping scheme which, if we do not see the market adapting to reality, we will be able to promote as a project in Parliament," Bolojan stated.
The Prime Minister explained that Romania imports the majority of the diesel consumed, making the price of this fuel more sensitive to developments in external markets.
Tanczos Barna: The state should bear the additional cost incurred by farmers
At the same time, Deputy Prime Minister and Acting Minister of Agriculture, Tanczos Barna, announced that the ministry he leads will propose to the Ministry of Finance that the state bear the additional cost incurred by farmers after the expiration, on July 1, of the 30 bani per liter diesel excise tax reduction scheme.
"If the 30 bani excise tax reduction on diesel is not extended, then, in addition to the current support form, we must provide this support. We will propose to the Ministry of Finance that this burden be taken over by the state," Tanczos stated, as quoted by Agerpres.
He specified that the scheme through which the state reimburses the excise tax used in agriculture remains in force, and the government decision necessary for the payment of the support for the period up to June 30 is under approval at the Ministry of Finance.
The Minister also mentioned that there are no outstanding payments for the subsidy for diesel used in agriculture, and even the first quarter of this year has been paid. He also proposed simplifying the system so that farmers receive reimbursements within a maximum of three months from invoice payment.
"The diesel price is unacceptably high"
Tanczos Barna criticized the current level of diesel prices, stating that it no longer reflects international price developments.
"The diesel price is unacceptably high," said the Acting Minister, pointing out that although oil has returned to pre-Middle East conflict values, pump prices have not followed the same downward trend.
He recalled that the measure to limit the commercial margin is no longer in force, but he argued that the state must intervene in exceptional periods when the market creates major imbalances.