​On Thursday, the government will adopt a decree on an emergency situation, which will extend the payment of compensation of 50 monies per liter of gasoline and diesel fuel until the end of this year.

• “It was a decision that had an effect. We have managed to stabilize and even reduce the price of fuel, a price that affects the entire chain, and thus by the end of the year we will have the same compensatory compensation.” Prime Minister Chuke said at the beginning of the government meeting.

In the agenda of the Government on Thursday, the adoption of this draft emergency resolution is listed only as “under consideration”, without a single document. Instead, on September 23, the Ministry of Energy submitted for public discussion a draft of an emergency order regarding the measure announced by the Prime Minister.

Reduction of 0.5 lei/liter on fuel, extended until December 31, 2022

Presented by HotNews.ro on Wednesday this GEO project.

The law provides for the continuation of the possibility of providing business entities that sell gasoline and diesel fuel to end consumers – individuals and legal entities who buy fuel for their own consumption – a price discount of 0.5 lei/liter, including VAT. and establishing a support mechanism from the state budget in the amount of 0.25 lei/liter, including VAT, for economic entities that provide this discount, and for the period from October 1, 2022 to December 31, 2022.

• SEE DRAFT GEO AND KEYNOTE HERE

Like a noveltythe project provides that the price reduction should also be provided for vehicle fuel vouchers (BVCA).

Therefore, from October 1, 2022, for deliveries of fuel, gasoline and diesel fuel made on the basis of motor fuel vouchers, the price discount will be provided by supplying an additional amount of fuel corresponding to the amount of the price discount in effect. to the relevant supplies, and the price reduction will be noted on the non-fiscal check.

Another proposed change is that authorized business entities engaged in wholesale resale of energy products are obliged to provide final consumers, individuals or legal entities, with a price reduction, which they clearly indicate in the issued invoice.

• “This avoids potential discrimination between end consumers, legal entities that have the opportunity to supply directly from retail networks, in relation to end consumers who do not have this opportunity and are supplied exclusively through the wholesale channel.
• At the same time, it avoids the occurrence of logistical blockages (supply, rapid depletion of stocks at stations) at the level of distribution stations, which may be caused by the migration of some end customers, legal entities, to distribution stations, customers who usually supply large volumes of fuel.” , this is shown in the explanatory note.

How the reduction of 50 money on fuel was affected

The reasoning also shows that it changes the extent of the reduction of 50 money, borne equally by the state and private operators, on fuel prices, which are set freely on the basis of the relationship between supply and demand in the domestic market, respectively in the foreign market:

“According to the Competition Council, starting January 1, 2022, the price of gasoline has increased by 20%, diesel fuel by 37%, with a reduction of 50 money per liter.

According to Price Monitor, the average price of standard gasoline in Romania on September 2 was 7.39 lei/liter (with a discount of 50 bans), and diesel fuel was 8.37 lei/liter (with a discount of 50 monies). On September 2, the price of oil was around $93/barrel, which is about 20% more than at the beginning of the year.

Since the beginning of the year, without taking into account the discount of 50 ban/liter, the price of gasoline has increased by approximately 28%, and diesel – by approximately 44%.

A Platts quote is an international reference price in the gasoline or diesel market and represents the value reflected by demand, supply and transactions between traders in the wholesale fuel market.

Platts quotes are not public data and tend to follow the same trend as the price of a barrel of oil over the long term.

Platts quotes for gasoline and diesel, as well as the price at which crude oil is trading, while currently down from an all-time high in June of this year, hit levels not seen since 2014.

YTD Platts gasoline quotes are up 20% and diesel quotes are 77% higher than at the start of the year.

The application of the 50 baht/litre discount from 1 July by all major distributors makes real average prices from 2 September compared to prices from 1 January 2022 only 20% higher for petrol and 37% higher. on diesel, according to data from the Competition Council.

From July 1, 2022, with the entry into force of GEO No. 106/2022, in addition to the 50 baht/liter discount applied by all distributors, the average price of gasoline decreased by 76 baht/liter, while the average price of diesel fuel was lower by 35 bans/liter,” the document says.

• Read more: Diesel fuel – less than 8 lei/liter, for the first time after 6 months. What’s new in the resolution that preserves the 50 cash discount on fuel