Romania’s coalition government could decide next week to temporarily lower taxes on gasoline and diesel to counter the economic fallout of the US-Israeli war on Iran.
Romania’s government said on Thursday that it has adopted an emergency decree declaring a state of crisis in the crude oil and petroleum products market between April 1 – June 30, introducing a series of measures to shield the economy and consumers from rising fuel prices amid the war in the Middle East.
Prime Minister Ilie Bolojan said that the government would not reduce VAT on fuels – a proposal made by trade unions – because “we have an infringement component with the European Union,” he told G4Media,
The ordinance adopted on Thursday provides for the limitation of the commercial mark-up on fuels, the limitation of exports, etc. He said “a second measure will be taken to mean an intervention to reduce the taxes that are established for fuels,” at a second meeting on Monday.
Economic operators will be allowed to reduce the biofuel content of petrol from 8% to a minimum of 2% for petrol during the crisis period.
Economic operators will require prior written consent from the economy and energy ministries in order to carry out exports and intra-community deliveries of diesel and crude oil, due to a surplus of petrol and a deficit of diesel in Romania.
Exports carried out without the necessary permits will be sanctioned with a fine of 5% to 10% of turnover and the confiscation of the goods involved.
The protective measures will apply for the initial period of three months, with the option to extend them in successive three-month intervals if the crisis persists.
The government’s emergency decree also introduces measures for the natural gas market, including proportional distribution to suppliers.
Currently, Euro95 petrol sells at an average of 1.692 euro per litre at the pump in Romania, while the price of diesel is 1.945 euro per litre, according to Fuelo.
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