Romania to Reduce the Excise Duty on Fuel by Half

The ruling coalition validated the proposal to excise the fuel by 50% on Tuesday, February 22, following the recent sharp rise in fuel prices. However, negotiations with the European Commission and significant petroleum corporations must take place before it can be implemented.

According to sources involved in the discussions on a local TV station, the policy would be imposed for three months. The price of petrol and diesel would be reduced by 15% per litre at the end-user level.

We proposed to the coalition leaders the solution of the temporary decrease by 50% of the fuel excise, a measure that would reduce the price at the pump immediately by more than 1 lei. The proposal was validated at today’s meeting, so in the near future we will have discussions with the European Commission and major fuel companies to reduce fuel prices to a level that is bearable for all consumers, whether individuals or companies.

Minister of Finance, Adrian Caciu

In April 2022, the ruling coalition decided to vote to reduce electricity and gas prices and offset bills. The National Regulatory Authority for Energy (ANRE) is anticipated to present ideas for at least a six-month term of price regulation by April.

According to European Commission data cited by Wall-Street.ro, Romania’s excise charge on gasoline is the second-lowest in the European Union in percentage terms. Only Poland, which accounts for 37% of the ultimate fuel price, has a higher percentage of 44%.