Romania’s government is attempting to cap fuel prices for the third time as costs at the pump continue to rise, even as a political crisis deepens. The emergency ordinance has already received a negative review from the Economic and Social Council, and employer and union groups warn that capping the commercial margin could actually lead to fuel shortages.
The ordinance was modified at the last minute and, as of now, does not have the necessary approvals. This latest attempt to control fuel costs comes amid growing concerns about economic stability and political maneuvering within the ruling coalition.
UPDATE: The government has modified the emergency ordinance regarding fuel, again, just hours before it was scheduled to be adopted. According to sources, the ordinance was added to the supplementary agenda.
According to the draft ordinance, a state of crisis will be declared on the crude oil and/or petroleum product market through June 30, 2026. The initial proposal included a six-month period, with the possibility of a three-month extension.
“The duration of the crisis situation provided for in Art. 1 may be extended successively for periods of no more than 3 months, as long as the circumstances that determined the crisis situation persist,” the ordinance states.
The commercial margin will no longer be capped at 50% of the 2026 average, but “at most the average annual value of the commercial margin practiced for these products in 2025.”
“During the period between April 1, 2026 and June 30, 2026, the average value of the commercial margin for gasoline and diesel in the Refining and Wholesale and Retail segment, excluding exports and intra-community deliveries, is limited to at most the average annual value of the commercial margin practiced for these products in 2025 by each economic operator that imports, produces gasoline and diesel, distributes and/or markets these products,” the document reads.
The limitation of the commercial margin “applies to each economic operator in the import, production of gasoline and diesel, distribution, marketing circuit, respectively at the level of wholesale and retail activities.”
UPDATE: The government meeting scheduled for 11:30 AM will start without the Legislative Council’s approval of the fuel ordinance, which is still under review, according to sources.
UPDATE: The Ministry of Finance is considering two amendments to the emergency ordinance for fuels, following discussions held Wednesday with representatives of employer organizations, sources say. These proposed changes include:
- The ordinance should be in effect until June 30, not for six months as initially proposed;
- the commercial margin should be capped at the average value from 2025, not at 50% of the 2025 average, as initially announced;
sources indicate that the Legislative Council has not yet approved the ordinance, which the government intends to adopt at its upcoming 11:30 AM meeting. The approval is still pending.
–Original Story–
Meanwhile, employer groups are urgently requesting support for the food industry and the railway sector, which are directly affected by rising prices.
The Social Democratic Party (PSD) is pushing for a reduction in excise duties and even a VAT exemption for a limited amount of fuel. The government is currently rejecting tax changes but is preparing a new ordinance.
A government advisor stated in a live interview that the state has limited options, given the budget deficit.
A new government meeting will begin at 11:00 AM to further discuss solutions to the fuel crisis.
At the same time, the political crisis is escalating. The rift between the PSD and the National Liberal Party (PNL) is becoming increasingly visible, and threats to dissolve the Coalition are becoming more frequent.
On Wednesday evening, Sorin Grindeanu warned that he is prepared to withdraw the Social Democratic ministers from the government and move the party into the opposition.
In a statement to RTV, Grindeanu also said that he would not support a minority government from the opposition and hinted—as he did earlier in the day—that the PNL might consider an agreement with AUR to secure parliamentary support for a liberal-led cabinet.
Grindeanu also blamed the current executive branch for delaying measures to curb rising fuel prices.
Government Solutions to the Fuel Crisis
- declare a crisis on the fuel market
- cap the commercial margin at the pump at 50% of the 2025 average
- allow a reduction in the concentration of biofuel
- limit exports and intra-community deliveries
Employer Requests in the Fuel Crisis
- reference to the international quotation
- excise duty compensation for the food industry
- compensation for diesel costs, railway sector
PSD Requests in the Fuel Crisis
- variable excise duty reduction
- 78 liters/hectare without excise duty for farmers
- VAT exemption for a maximum of 50 liters of fuel
