Romanian Senate committee backs bill for dynamic excise duty to cut fuel prices

A bill aimed at lowering fuel prices in Romania has received a favorable opinion from the Senate's economic committee. The proposed legislation introduces a "dynamic excise duty" that can be adjusted between 5% and 25%, depending on the fluctuating price of fuel at the pump and international oil market rates.

This new mechanism, agreed upon by former Energy Minister Bogdan Ivan and Finance Minister Alexandru Nazare, will replace a proposed reduction in Value Added Tax (VAT) on fuels. The excise duty levels will be reviewed and updated twice each month. Finance Minister Alexandru Nazare stated that an initial reduction of 10% will be implemented as soon as the law is officially promulgated.

Bogdan Ivan, the bill's initiator, asserted that this dynamic excise duty approach will have a greater impact on prices than a VAT reduction. The proposed measures also include limiting diesel exports and capping commercial markups, all intended to bring down the final cost of fuel for consumers. The bill now proceeds to the Parliament for debate and a vote.

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Reducere clară a accizei, impactul va fi mai mare decât în cazul reducerii TVA, limitarea exporturilor de motorină și limitarea adaosului comercial. Toate măsurile vor duce la o reducere finală a prețului