The Chamber of Deputies adopted on Wednesday, as the decision-making body, the law to reinstate the state of emergency in the oil and petroleum products market, which introduces a package of measures aimed at limiting the increase in fuel prices.
Among these measures are the temporary reduction of the diesel excise tax, limiting diesel exports, and establishing a solidarity contribution for exceptional profits in the sector.
The bill was adopted with 293 votes in favor and two abstentions.
According to the law, the diesel excise tax can be reduced during the declared state of emergency, and diesel exports can only be made with the approval of the competent ministries.
Additionally, the VAT rate for gasoline and diesel in the refining and marketing segment is set at 19%, and economic operators will be able to temporarily reduce the biofuel content in gasoline from 8% to a minimum of 2%.
The law also introduces additional reporting obligations for companies in the industry, which will monthly transmit data to the authorities regarding the prices practiced and the implementation of measures. Moreover, the Competition Council, the Ministry of Finance, and the National Authority for Consumer Protection may request detailed information on price formation and commercial markups.
The state of emergency will be in effect until October 31, with the possibility of extension by government decision.
The law still needs to be promulgated by President Nicușor Dan.
Bogdan Ivan: "Should lead to a reduction in the final price"
Following the Parliament vote, PSD deputy Bogdan Ivan stated that the adopted measures should result in cheaper fuel for the population and companies.
"An extremely important project has just been voted, namely the declaration of a state of emergency in the fuel sector, the reduction of the diesel excise tax, limiting diesel exports, limiting the commercial markup, and overtaxing exceptional profits in the field of fuels. This should lead to a reduction in the final price for private consumers, as well as for companies in our country," Ivan stated.
The PSD deputy mentioned that the project was initiated a week ago by his party and was quickly adopted by Parliament, after similar measures provided in an emergency ordinance expired at the end of June.
"When we left, together with my colleagues from the Social Democratic Party, from the current government, on April 23, we had a barrel price of oil at 105 dollars and a price of 9 lei per liter of diesel. Today we have a barrel price of 78 dollars and 10 lei per liter of diesel. Today, in Parliament, we corrected this and it may be one of the few good news we have given recently," he stated.
How will the mechanism work
The reduction of the excise tax can be applied for one or more periods of two weeks each, as long as the state of emergency is maintained.
The law also provides for sanctions for operators who exceed the maximum limit of the commercial markup. If the excess is up to 5% above the permitted threshold, the fine will be equal to twice the total value of the excess, calculated based on the quantity of products sold during that period.