Italy, Portugal, Slovenia, Hungary, and Spain were among the first to reduce excise duties on petroleum products, recently joined by Ireland.

The most significant reductions were seen in Italy, which cut excise duties by 30% for both petrol and diesel, equivalent to RON 1 (€0.20) per litre. Spain also reduced its VAT rate on fuel from 21% to 10%.

However, such VAT reductions generally contravene European legislation, specifically Directive 2006/112/EC, which does not list fuel among the products eligible for reduced rates. Member states implementing these measures risk infringement procedures from the European Commission unless an explicit waiver is granted.

Currently, Romania maintains some of the highest excise levels in the EU, ranking fifth for diesel (€0.55 per litre) and eighth for petrol (€0.60 per litre). While the government is discussing a potential 5% to 25% reduction in diesel excise duties, high fiscal deficits limit intervention options.

"The current fuel price crisis is not unprecedented," Adina Vizoli, Partner PwC Romania said. "The invasion of Ukraine caused a similar shock in 2022, but the difference now is that price increases in Romania started from a higher baseline due to elevated taxes. Compared to 2022, excise duties on petrol and diesel are now higher by more than RON 1 (€0.20) per litre."

While Romanian diesel prices rose by approximately 20% between late February and late March—below the EU average of 27.6%—the local economy remains vulnerable due to high inflation.