​In Romania, more than 3 million households are heated with firewood or wood products, and in the context of the energy crisis and artificial price increases, the government wants to cap wood prices for this winter.

Artificial increase in the price of wood: it is also resold for more than 700 lei/m3

The government is preparing a draft of an emergency decree to limit firewood prices after noticing a series of artificial price increases, as well as to protect the population in the energy crisis.

• “In Romania, more than 3 million households are heated with wood or wood products, and in rural areas, the number of households where wood is used as a means of heating is more than 2.5 million households and represents 85.00% of households registered in rural areas, rural households with incomes below the national average. (..)
• Furthermore, taking into account the gap between the incomes of the population compared to the EU average and given that they are below the EU average, the standard of living adjusted for local prices is 72% of the EU average.
• At the same time, it should be taken into account that for the managers/owners of forest funds, producers of firewood/wood pulp for the purpose of firewood, the products are secondary, and the production costs consist of the related part of the costs associated with forestry services in the year, the costs of production and I will prepare
• They are insignificant and allow them to sell firewood/timber for firewood at prices from 60 lei/m3 to 543 lei/m3. But now in DIY/intermediary networks, prices exceeding 700 lei/m2 are recorded.” this is shown in the explanatory note to the GEO project.

SEE DRAFT GEO AND KEYNOTE HERE

What price ceilings for firewood is the Government preparing

The draft GEO act proposes:

• Setting final invoice prices up to a maximum of 500 lei/m3, including VAT, for the following types of wood needed for heating in the cold season: firewood, wood shavings, chips, sawdust.
• Limitation of final prices in invoices for the following products: wooden briquettes – a maximum of 1,500 lei/ton including VAT; the maximum price of wood pellets is 2,000 lei/ton including VAT.

The regulations apply to end consumers, i.e. natural persons, as well as to the following entities: state and private educational institutions, social service providers, local interests, administrative-territorial units, as well as their subordinate units, religious units.

Measures will be applied until March 31, 2023.

Failure to comply with the provisions will be considered an offense and will be punishable by a fine of 3,000 to 5,000 lei.

Minister of the Environment: the free market can raise the price of firewood to 800 lei per cubic meter / The price will be limited

The free market can raise the price of wood to 800 lei per cubic meter, which is why government intervention is needed, Environment, Water and Forests Minister Barna Tanchos said on Wednesday, September 28, according to Agerpres.

He referred to the draft regulatory act, the purpose of which is to limit prices for firewood, as well as ban the export of certain species.

It should be noted that in areas close to the government, they are talking about 500 lei/cubic meter, but answering HotNews.ro’s question, the minister said that no decision has been made about the amount, the decision will be made in the government. meeting this week.

“Any intervention in the market is artificial because the free market creates the price. The free market can even bring the price up to 800 lei per cubic meter. That is why there is a need for government intervention,” the minister said.

According to him, a sufficiently high or low price will be chosen and a balanced price will be established for state institutions, for kindergartens, schools and for citizens.