Romanian Prime Minister Ilie Bologian said that a cap on fuel prices cannot be imposed because it risks creating problems for Romania with the EU and generating huge debts, local media reported. In an interview last night with Digi 24 television, Bologian stressed, however, that the government will intervene if the situation in the Gulf does not calm down and the crisis drags on, BTA reported.
“If it is not about domestic production and you impose a cap (on prices), you risk problems in relations with the EU. Then, if you cannot control prices, you risk huge debts“, Bologian said. He pointed out that in order to impose a fuel price cap, as Hungary did in the midst of the parliamentary election campaign, you would need to “have fiscal space.”
Romania has been struggling with an excessive budget deficit for several years, and in 2024 it amounted to 9.3 percent of gross domestic product, which was the highest level in the EU. Last year, Bucharest managed to reduce the budget deficit to 7.65 percent of GDP, and this year’s draft budget includes a further reduction to 6.2 percent of GDP.
The war in the Middle East has pushed up fuel prices worldwide, including in Romania. Today, the most popular gasoline in Romania is sold at an average price of 8.4 lei per liter (1.69 euros), and diesel - at a price of about 9.0 lei per liter (1.82 euros), according to local fuel price comparison sites in the country.
Prime Minister Ilie Bologian assured that solutions will be found if the crisis in the Middle East drags on. “If prices continue to rise, we will intervene, I don't want to say in advance how, because things need to be studied carefully“, said Ilie Bologian.
He announced that today there will be a meeting with the management of the company OMV, which has developed solutions and assessments in the event of a possible extension of the blockade of the Strait of Hormuz, which is vital for global oil and gas supplies and whose closure by Iran has caused a sharp increase in the prices of these raw materials.
The Romanian Prime Minister said that he had spoken with the main operators on the Romanian fuel market, and the increase in fuel prices in Romania is much smaller than in Western countries. The Prime Minister stressed that the great pressure for both Romania and Europe concerns diesel fuel, where processing capacities are smaller.
“Diesel has increased in price the most, by nearly 60 percent. Romania has a much larger capacity for refining gasoline. The greater pressure is on diesel in Europe, but also in Romania. There was no way we could avoid it“, the Romanian Prime Minister noted.