Romanian PM Bolojan: Fuel prices to drop as companies exhaust expensive stocks

Romanian Prime Minister Ilie Bolojan announced that fuel prices are expected to gradually decline, as oil companies will soon deplete their existing stocks purchased at higher international prices. He anticipates that by the second half of July, prices will return to levels seen before March.

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As the capping scheme expired, two things happened. The first, the most important and best thing, is that we have relative peace in the Gulf. (...) As you see on international markets, the price of crude oil has returned to pre-conflict levels.

Bolojan explained that the recent price increase felt by consumers since July 1 was primarily due to the excise duty returning to its previous level, adding about 36 bani per liter. He also noted that tensions in the Gulf have eased, causing international oil prices to revert to their pre-conflict values.

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This did not happen with diesel, which is the most requested fuel during this period, and we still have a global diesel price higher than before. The second phenomenon is that, with the end of the capping scheme, the excise duty returned to the previous level, so plus 36 bani.

However, the prime minister acknowledged that this decrease has not yet fully reflected in diesel prices, which are currently in high demand. He stated that companies are still selling fuel from stocks acquired 10-15 days ago when international prices were higher. "As a consequence, starting from these days, gradually, gradually, we will see a decrease in fuel prices," Bolojan said.

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Based on the discussions I had with the representatives of the companies operating in this field, I drew some conclusions. First, the stocks they purchased 10-15 days ago, because they work with stocks purchased at high prices, from mid-June, will be depleted in the coming days and they will enter with stocks that were purchased at much lower prices.

He added that he has discussed this matter with representatives of oil companies, who confirmed that their current high-priced inventory will be sold off in the coming days, to be replaced by fuel bought at lower costs. This transition is expected to lead to the anticipated price reduction at the pump.

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Consequently, starting from these days, gradually, gradually, we will see a decrease in fuel prices, which, in the second half of July, should approach the prices that were on the market before March.