Government to hike fuel excises by 20 percent in 2014

The government rolled out plans to hike excises in gas and diesel starting next year, as part of its effort to increase budget revenues.

The measures are included in a report published by the Ministry of Finance on Wednesday regarding Romania’s macroeconomic outlook in the 2014 -2017 period.

The excises in gas are expected to go up from EUR 467/ton to EUR 557.9/ton, respectively from EUR 359.6/1,000 liters to EUR 429.6/1,000 liters. This should send an additional RON 810 million (EUR 181 million) to state coffers.

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In diesel, the excises will be hiked from EUR 391/ton to EUR 473.8/ton, respectively from EUR 330,395/1,000 liters to EUR 400,395/1,000 liters. The government expects to raise another RON 1.8 billion (EUR 403 million) in this field.

Authorities also unveiled earlier this month the EUR 0.7 additional excise that will apply for each liter of sold gas or diesel.

The government has also overhauled the computation of excises, pegging them to the inflation rate, if the RON-EUR exchange rate in the first working day in October is lower than the rate recorded in the previous year. This measure is expected to generate another RON 1.1 billion (EUR 246 million) in fresh resources.

Ovidiu Posirca