Why Fuel Prices Aren't Dropping in Romania Despite Falling Oil Prices

Romanian drivers are not seeing any relief at the pump despite a recent decrease in international oil prices. Standard diesel continues to cost between 9.08 and 9.14 lei per liter, a price point that persists even as crude oil is cheaper than it was just a few days ago.

This situation is particularly noticeable when comparing current prices to those before the escalation of tensions between Israel and Iran. On February 27, when Brent crude was around $73 per barrel and WTI at $67, the average price for diesel was approximately 8.25 lei per liter. By March 1, it had risen slightly to 8.28 lei. Today, despite oil prices being near those earlier levels, diesel is nearly 90 bani more expensive.

Energy expert Silviu Gresoi explains that the perception of immediate price changes at the pump is often mistaken. "We don't buy crude oil at the pump. It is the result of a refined product, transported, distributed, and taxed in lei. It's a matter of duration. Even if oil falls on international markets, the effect is not seen automatically from one day to the next in the price of diesel," Gresoi told "Adevărul." Refineries operate with previously purchased stocks, companies have long-term supply contracts, and transportation and distribution costs do not change daily.

Another significant factor contributing to the sustained high prices is the substantial portion of taxes within the final cost of fuel. Gresoi estimates that for a liter of diesel priced at around 9.12 lei, excise duties and VAT together amount to nearly 4.4 lei, representing approximately 48% of the price paid by consumers. The excise duty alone on diesel is 2,804.29 lei per 1,000 liters.

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We don't buy crude oil at the pump. It is the result of a refined product, transported, distributed, and taxed in lei. It's a matter of duration. Even if oil falls on international markets, the effect is not seen automatically from one day to the next in the price of diesel.