The government is considering re-introducing the compensation scheme with 50 pesos per fuel when prices reach the level at which the decision was made last time, government sources told HotNews.ro on Thursday. At the end of the government meeting, Finance Minister Adrian Cachiu said that the state would intervene if necessary, but he did not want to set a ceiling and false expectations.

Government sources said on Thursday ahead of a cabinet meeting that if the compensatory measure of 50 paise per fuel is to be reinstated, it will be done within 3 months first.

Kechiu: The government will step in if the situation becomes too volatile. We are not in that zone now

At the end of the cabinet meeting, Finance Minister Adrian Cachiu confirmed that the authorities are considering reintroducing the 50 peso fuel compensation scheme. However, answering the question whether there could be a moment when prices will exceed 9 lei, for example, for diesel fuel, the minister avoided calling such a scenario certain.

• “He intervened when things reached an unbearable limit. I can tell you only one thing: this government will step in if the situation becomes too volatile or enters an area that cannot be sustainable for the economy and the citizens. Things are not in that area as we speak.
• And we can look at February 2022 when the prices started very high, but we also have to look at the oil market and the fuel market, there are more elements to consider and we will see. When the need arises, the Government will intervene, I assure you. A calculation will be made and it will be seen how and how much it can be supported,” said Adrian Cachiu.

Asked if the measure could be reintroduced when diesel exceeds 9 lei, as it did on June 30, the day before the government’s scheme came into effect, Cachiu avoided a definitive answer.

• “I would not like to set a ceiling so as not to create expectations. I assure you that we have everything we need as a baseline, but we don’t want to set it publicly because it creates false expectations. It may be quicker to intervene if the situation shows more accelerated volatility. The economic dynamics are what lead to the government’s response,” Cachiu said.

What were the prices of diesel and gasoline on the eve of compensation of 50 money and what they are now

The government introduced compensation in the amount of 50 money per liter of gasoline and diesel fuel on July 1, 2022, is a voluntary measure financed equally by the state budget and gas station operators.

The measure, which was initially adopted for three months, was extended until December 31 in September.

• The average price of a liter of gasoline was 8.65 lei on June 30, 2022, and fell to 8.17 lei on July 1, the first day the fuel compensation of 50 lei was introduced, according to Peco-online.ro.
• The average price of a liter of diesel fuel was 9.22 lei on June 30, 2022 and decreased to 8.73 lei on July 1, 2022.

At the end of December 2022Prime Minister Nicolae Chuke has announced that the 50 bani fuel price compensation measure will no longer apply from January 1, 2023, but could be reinstated under certain conditions.

• “Fuel price compensation, if at first it seemed that it would not have an effect, we believe that it was a good measure. We inform you that from January 1, it will no longer work. To the extent that prices will have an evolution that exceeds the purchasing and paying capacity of citizens, we will apply it again,” the Prime Minister said at the time.

MeanwhileOn January 25, 2023, the average price of a liter of gasoline reached 6.59 lei, and the average price of a liter of diesel fuel reached 7.74 lei, according to Peco-online.ro.