Romania's government approves temporary diesel excise duty cut

Business Forum
The Romanian Government has officially approved an emergency ordinance aimed at providing relief for the energy market through a temporary reduction in diesel excise duties.

This fiscal measure is designed to combat the ongoing volatility within the fuel sector and will remain in effect for the duration of the declared crisis in the petroleum and fuel markets.

Under the new regulations, the excise duty for standard diesel on the domestic market will be reduced by RON 300 (€60) per 1,000 litres. When accounting for VAT, the total relief for consumers amounts to RON 0.36 (€0.07) per litre.

Specifically, the duty will drop from RON 2,804.29 (€565) per 1,000 litres to RON 2,504.29 (€505). On a per-tonne basis, the rate decreases from RON 3,318.74 (€669) to RON 2,963.7 (€597).

Ioana Dogioiu, Government Spokesperson, said: "This reduction applies from the moment the emergency ordinance enters into force and will last throughout the period declared as a crisis in the oil and fuel market."

Beyond consumer relief, the ordinance introduces a "solidarity contribution" targeting economic operators involved in the extraction and sale of Romanian crude oil. This measure functions as a windfall tax, capturing 60% of exceptional profits generated during this period. To protect future energy security, the tax is applied through specific thresholds linked to Brent oil prices, ensuring that the levy does not negatively impact essential investment levels.

The budget impact of the diesel excise reduction is estimated at approximately RON 0.61 billion (€123 million).

The executive views this move as a necessary balancing act between supporting the transport sector and capturing excess revenues from the energy industry.

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