Ooni Koda
  1. Home
  2. /
  3. Newsfeed
  4. /
  5. Study: The state, the main beneficiary of fuel...

Study: The state, the main beneficiary of fuel prices; the optimal solution would be to lower taxes

July 21, 2022

The Romanian state is the main beneficiary of fuel prices, so that the best measure for the lowing of prices would be the reduction of excise and VAT, while capping would be worse than better, shows an analysis made by the Association Intelligent Energy (AEI).An analysis of the cost estimates for oil products at the pump shows that, compared to the same day in 2021, the price at the pump is 63% higher, and this increase is based on several considerations: The increase in crude oil prices by 64%, compared to the quotations on the same day in 2021, The increase in the leu/dollar exchange rate by 14%, compared to the quotations on the same day of 2021, the increase in the costs of shipping crude oil in the Black Sea by over 500%, the increase in insurance costs for ships traveling in the Black Sea by over 600%.An analysis of estimate of costs for oil products At the same time, refinery costs increased by 30%, supply costs by 100%, excise increased by 3% and the VAT perceived by the state as a result of the increase of application basis by 63%.Following gasoline quotations in 2022, they increased by 75%, more than double the price increase in Romania. At the same time, the state has profited fully from this increase, with the money collected from VAT this year, from the sale of gasoline increasing by 40%. As regards the quotations of diesel, in 2022, they increased by 80%, more than the double against the price increase in Romania. The money obtained from VAT by the state this year from the sale of diesel have increased by 40%.‘The state, in the case of fuels as well as gas and electricity is the big winner as a result of increased prices. Concretely, the state has gained supplementary against the similar period of last year (the first six months of 2022), 600 million euro from the increased price of petrol and diesel at the pump. The companies which sell fuels probably got more than the similar period of last year, the tenth part of what the state got supplimentarily’ the authors of the analysis said.‘The measures which are necessary: the diminution of VAT and excise for fuels, to limit the commercial margins for suppliers, to make a campaign of energy diplomacy for accession to the new sources and routes for oil transport, to develop a plan for emergency situations for protected consumers. The populist alternative for capping the price is the equivalent of the installation of fuel shortages in Romania in a few months’ the AEI specialists say.Unfortunately, things will not stop here. The AEI provisions show that in the near future the petrol and diesel price will increase at least to the level of quotations for these products, namely over 11 lei/l for diesel and over 10 lei/petrol.

Read in full - click here
Venice Film Festival: Romanian director Cristian Mungiu, member of this year’s jury

Romanian director Cristian Mungiu will be part of the jury that will judge the films in the main competition of this year’s Venice Film Festival - Venezia 82. The jury, headed by American director Alexander Payne, includes French director and screenwriter Stéphane Brizé, Italian director and screenwriter Maura Delpero, Iranian director and writer Mohammad Rasoulof, Brazilian actress, writer, and […]

Council of Europe report: Romania among six European countries facing severe prison overcrowding

Romania continues to face significant prison overcrowding, according to the Council of Europe’s latest data, released on Friday, July 18. The 2024 Annual Penal Statistics on Prison Populations (SPACE I) show that Romania is among six countries in Europe with severe overcrowding, housing 116 inmates for every 100 available places. The report, which...

Chris Hemsworth's surprise drum performance with Ed Sheeran in Bucharest featured in new ‘Limitless’ season

Chris Hemsworth returns to Disney+ in August with a new season of the National Geographic documentary series Limitless, this time focused not just on longevity, but on discovering how to live better. Titled Limitless: Live Better Now, the three-part season follows Hemsworth through physical, emotional, and mental challenges across six countries, with one standout episode […]

Black Sea 200 Regatta 2025: First non-stop offshore regatta in Romania takes place this month

The Black Sea 200 Regatta 2025, Romania’s first non-stop offshore regatta with a 200 nautical mile route, takes place between July 21 and 27. Now in its first edition, the event brings together more than 10 boats from Romania and Bulgaria, according to the organizers. The endurance course will start and finish in the Romanian […]

Illegal zoo in southern Romania fined for environmental and animal welfare violations

The National Environmental Guard has fined an illegally operating zoo in Dâmbovița county, southern Romania, a total of RON 120,000 following a joint inspection that uncovered serious violations, including the lack of environmental authorization and inadequate conditions for wild animals kept in captivity. The zoo was reportedly charging RON 50 per person for entry and […]

Romania’s cybersecurity agency and Enevo join forces to protect energy infrastructure

The National Cybersecurity Directorate (DNSC) and engineering company Enevo Group have signed a strategic cooperation agreement to strengthen cybersecurity in Romania’s energy sector. The partnership aims to test and develop monitoring and alerting technologies for cyberattacks, and to improve national response coordination to incidents affecting critical infrastructure, the companies said. The agreement focuses on sharing […]