Why diesel prices dropped to just 9.99 lei? Fuel law dismantled by economist: 'An absolutely unfavorable measure'

Romania's "fuel law," intended to reduce prices, has largely failed to meet expectations. While diesel briefly dipped below 10 lei per liter at OMV Petrom and Socar stations, economist Adrian Mitroi argues the measure is "absolutely unfavorable" for both consumers and the deficit.

“

The measure does not have the desired effects because these kinds of interventions are not good. In behavioral economics, this kind of law, along with many other fiscal measures promoted by the Government, are a big no, because they have a regressive character, in conditions where we already have very high inflation, also with a regressive effect.

Mitroi explained that such interventions are counterproductive in behavioral economics, especially amid high inflation. He criticized the law for its regressive nature, noting that the meager savings on a full tank do little for vulnerable groups struggling with rising prices. Instead of broad measures, Mitroi advocated for targeted solutions like transport vouchers for food, people, or small agricultural entrepreneurs.

“

The 30 lei that are saved on a full tank of diesel for vulnerable categories in terms of price increases, represent rainwater. These are absolutely unfavorable measures for both the deficit and the consumers.

The economist also pointed out the fiscal instability caused by the government's tax adjustments. He noted that while avoiding a VAT reduction was wise due to EU commitments, altering excise duties after an early-year increase creates uncertainty for investors and can justify future deficit increases. Mitroi stressed the need for fiscal stability and precise, practical support mechanisms rather than broad, ineffective interventions.

“

Parliament should not have enacted a measure only now, but it should have existed from the beginning. In its absence, however, the authorities could have adopted much better-directed measures, such as granting vouchers for food transport, passenger transport, or for other critical segments, not general solutions, but very precise ones.