Expert Slams Romania's Fuel Subsidy: 'Absurd Strategy' Encourages Consumption of Volatile Commodity

Romania's Chamber of Deputies has passed a law enabling market intervention during fuel crises, which includes a temporary reduction in excise duties on diesel and a VAT decrease to 19% for gasoline and diesel. The legislation also aims to limit diesel exports.

However, Corina Murafă, an energy policy expert and member of the European Economic and Social Committee, argues that the measure's impact will be minimal. She calculates that the reduction at the pump will be at most 60 bani per liter, as excise duties constitute only about 20% of the final fuel price. "If we take a price of 9 lei per liter, we are talking about approximately 1.80 lei representing the excise duty, and a 25% reduction of this amount means about 45-50 bani per liter," Murafă explained.

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Acciza este de aproximativ 399 de euro la mia de litri. Vorbim despre o reducere între 5% și 25%, iar probabil reducerea maximă s-ar aplica doar în scenariul în care prețurile cresc foarte mult. În momentul de față, acciza reprezintă aproximativ 20% din prețul final al carburantului. Dacă luăm un preț de 9 lei pe litru, vorbim de circa 1,80 lei reprezentând acciza, iar o reducere de 25% din această sumă înseamnă aproximativ 45-50 de bani pe litru. În practică, probabil discutăm despre o reducere cuprinsă între 35 și 60 de bani pe litru.

Murafă further criticizes the underlying philosophy of the measure, stating it encourages the consumption of a product whose base price Romania has little control over. With about 80% of fuel imported and domestic production also priced according to the market, she calls the strategy "absurd."

Instead of a broad excise reduction, Murafă proposes that the state could have implemented a "rebate" system, similar to past measures, to provide financial support exclusively to sectors directly affected by rising diesel prices, such as transporters. This approach, she believes, would have been more efficient and targeted.

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Statul putea introduce un sistem de tip rebate exclusiv pentru transportatori, așa cum s-a mai făcut și în trecut.