The Romanian government is planning to increase the price of Diesel fuel and gasoline by a minimum of RON 0.40 per litre in order to compensate excise revenue losses of RON 768 million in the first semester of 2017.
Taxes represent 50-52 percent of the cost of Diesel fuel and gas. The proposed changes are included in a draft ordinance to amend the Tax Code.
According to the draft project, the excise for gasoline without unleaded gasoline will be RON 2,035.4/ 1,000 litres, meaning an extra RON 379.04 compared to the current level. The same RON 379.04 increase will be enforced for Diesel fuel. In practice, the consumer will pay a minimum of RON 0.40 per litre of gasoline and Diesel fuel.
According to the draft ordinance, the amendments will enter force on 1 September.
According to the latest version of the Tax Code, the level of excises was meant to remain unchanged by 2020.
“Following the comparative analysis of the excise revenues for the first semester of 2017, compared to the first semester of 2016 resulted the fact that in the first semester of 2017, excise revenues for energy products dropped by RON 767,633,796.55,” the draft ordinance reads.
In June 2017, taxes represent 52 percent of the cost of gasoline, respectively 50 percent of the price of Diesel fuel (in Romania), given that, on average, at EU level, taxes represent 62 percent of the cost of gasoline and respectively 57 percent of the price of Diesel fuel,” the document reads.
In July 2017, Romania had the cheapest Euro-95 gasoline in the EU (EUR 0.997 per litter including tax), and the third cheapest for Diesel fuel (EUR 0.977 per litter with tax), after Luxembourg (EUR 0.955 per litre) and Bulgaria (EUR 0.961 per litre).
However, Romania is ranked 15th when it comes to the cost of gasoline before taxes, ahead of oil producing countries such United Kingdom and the Netherlands, but also Austria, Poland and Hungary. The country ranks 17th in a similar ranking when it comes to Diesel fuel.