Radio România Internațional

Tag: fuel

  • October 28, 2024 UPDATE

    October 28, 2024 UPDATE

    A roundup of local and international news.

     

    AGING The population of Romania in mid-2024 was 21,779,000, down 1% compared to June 1, 2023. According to the National Statistics Institute, demographic aging is deepening, with the over-65 age bracket now almost 1 million people larger than the under-14 segment. 55% of the Romanians live in urban communities, but urban-to-rural migration continues, and over 90,000 people moved to the countryside within a year. The number of women is now half a million larger than the number of men, and the national average age is close to 43.

     

    NATURAL GAS Romania has become the EU’s largest natural gas producer, with an output of 2.3 billion cubic metres in Q2, the energy minister Sebastian Burduja announced. According to him, Romania has outperformed the Netherlands, which reported 2.2 billion cubic metres, and compared to last year Romania’s natural gas output was 1% higher. Burduja added that most of the credit for this should go to the Romanian natural gas company, Romgaz, which in the first semester reported a 5% higher gas output than in the corresponding period of last year. The Romanian official explained that Romgaz intends to earmark EUR 120-160 million to increase production. This year alone, the Romanian company started operations with 7 new drilling rigs.

     

    SCHENGEN  Romania’s accession to the Schengen area with land borders, as soon as possible, is in the national interest of Hungary, the Hungarian Foreign Minister Peter Szijjarto said Monday according to the Hungarian press agency MTI. The government in Budapest hopes that this can happen before the end of the Hungarian presidency of the EU Council, on December 31, the Hungarian official also said, adding that Romania has taken all the necessary preparatory measures to join the border free area, as shown by the evaluations of Brussels experts and the almost unanimous support of EU members. Referring to Austria’s refusal to support Romania’s full entry into Schengen, the minister said that the Hungarian government is in permanent contact with Austrian officials on this matter. Romania’s accession would also be ‘in full agreement’ with the interests of the Hungarian ethnic community in Romania, Peter Szijjarto also said.

     

    NATO A delegation of the NATO Committee for Defense Policy and Planning is in Bucharest until October 30. According to a press release by the Ministry of Defence, the visit offers an opportunity to deepen collaboration and evaluate Romania’s contribution to strengthening NATO’s deterrence and defense posture. The NATO delegation was received at the headquarters of the Ministry of Defense, where the importance of strengthening allied solidarity in the current security context, with emphasis on the Black Sea region, was emphasized, and Romania’s priorities within NATO were highlighted.

     

    FUELS The average petrol price in Romania has gone up by 3.3% in the past month, to approx. EUR 1.44 per litre in Bucharest. During the same period, average diesel prices rose by 2.3%. Romania has the 7th-lowest petrol prices and the 9th–lowest diesel prices in the European Union.

     

    IMF An IMF mission led by Jan Kees Martijn will be in Bucharest between November 5 and 8, for a review of the latest economic and financial developments and of macroeconomic forecasts. In its latest “World Economic Outlook” report, released recently, the IMF lowered to 1.9% its estimate on Romania’s economic growth rate this year, from the July 2.8% forecast. According to the institution’s latest figures, in 2025 Romania is expected to see a 3.3% economic growth rate.

     

    DEBT According to the Romanian finance ministry, the country’s governmental debt reached approx. EUR 175 bln this July, accounting for 52% of GDP. Romania’s governmental debt is split between domestic debt (roughly EUR 85.7 billion), and foreign debt (approx. EUR 89.5 billion). On the other hand, the budget deficit estimated for 2024 is nearly 8% of GDP. Since 2020, Romania has been subject to an excessive deficit procedure, after in 2019 the country exceeded the 3% of GDP ceiling set under the Stability and Growth Pact. In 2021 the EU Council recommended that Romania bring its deficit below 3% by 2024.

     

    TENNIS The former WTA leader Simona Halep was defeated by Yue Yuan (China) on Monday, 6-3 6-3, in the first round of the WTA tournament in Hong Kong. It was for the first time that the Romanian player (aged 33, currently no. 869 WTA) played against Yuan (26, no. 44 WTA). The main draw of the Hong Kong tournament also includes Romania’s Ana Bogdan (109 WTA), who plays in the first round against Kimberly Birrell of Australia (111 WTA).

     

  • July 28, 2024

    July 28, 2024

    OLYMPICS – Romanian swimmer David Popovici has qualified, earlier today, to the semi-finals of the 200 m freestyle at the Olympic Games in Paris, with the best time of the series, 1:45.65, one of only two under 1:46 in an event where a 1:95-second spread covered the top 19 swimmers. The semifinals are scheduled for this evening. Popovici (19 years old) was fourth in the 200 m freestyle final three years ago, at the Tokyo Olympics. The Romanians Ioana Vrînceanu and Roxana Anghel qualified to the semifinals of the women’s doubles event, after winning the second series. Romanian rowers Florin Arteni and Florin Lehaci also qualified for the semifinals of the men’s double sculls, after finishing second in the second round. Romanian Sabrina Maneca Voinea has the highest score on beam and floor in the qualifications of artistic gymnastics. In the team competition, Romania totaled 159.497 points, being overtaken by Britain with 160.830 points.

     

    SEINE – The heavy rainfall in Paris in the last few days has affected the quality of the Seine, forcing the organizers of the Olympic Games to cancel the training for the triathlon contest, scheduled for Sunday morning, on the river crossing the French capital. The Olympic triathlon, made up of three events, swimming 1.5 km, cycling 40 km and running 10 km, is the first event of the 2024 Olympic Games to be held on the Seine, before the open water swimming events, scheduled for the second week of the Games. Before swimming on Tuesday and Wednesday, the triathlon competitors have the opportunity to “get used” with the river, even if some have decided to continue training in the pool.

     

    WEATHER – The weather  in Romania will be hot into next week. Until Monday evening, a yellow code is also in place in this respect, valid for the south and southwest of the country. Temperatures are expected to rise up to 37 degrees Celsius, while on Monday highs can reach 39 degrees in the south, then, as of Tuesday, the weather will again enter a cooling process until the end of next week, when temperatures are expected to exceed again 35 degrees Celsius. Meteorologists also say that Romania should brace for a new heatwave in August, but the nights will no longer be tropical.

     

    CHECKS – Romanian border police officers have carried out, since the operationalization of the eDAC application until now, more than 557,000 checks to establish the legal status of persons and to prevent and combat possible illegal acts, the application being used including by the mobile teams in the field. The most recent case was reported two days ago, when, following checks carried out in the departure area, a team of the Henri Coandă International Airport  found a man who could not provide documents, declined his identity verbally and presented a photo, on his mobile phone, of a Pakistani passport. Following the checks carried out, it was established that the man was on Romanian soil illegally.

     

    CHILDREN – The total number of children in Romania who had both parents working abroad was, at the end of March 2024, 9,039, some 719 less compared to the the previous year, according to data supplied by the National Authority for the Protection of Children’s Rights and Adoption (ANPDCA). Also, the number of children with parents working abroad dropped to 61,007 at the end of March, from 64,936 on December 31, 2023.

     

    FUEL – The average price of a liter of gasoline in Romania increased by 5.1% compared to last month, and the average price of a liter of diesel increased by 4.7%. In Bucharest, a liter of standard gasoline is sold at prices between 7.35 lei and 7.49 lei, and a liter of standard diesel is between 7.44 lei and 7.57 lei (1 euro is the equivalent of around 5 lei). Romania is currently in third place in the European Union among the countries with the cheapest gasoline, after Bulgaria and Malta, and in fourth place in terms of the lowest diesel price, after Bulgaria, Lithuania and Malta.

     

    RACE – Romanian pilot Simone Tempestini is in second place, out of over 100 crews, in the Rally di Roma Capitale, the fifth stage of the European Rally Championship (FIA ERC). Romania’s national rally champion eight times, Tempestini won stages 5 and 6, the latter being the longest of Saturday. Born in Italy to Italian parents, Tempestini has been living in Romania since he was 14 and became a Romanian citizen in 2016, the year he was also world junior champion. (EE)

  • December 29, 2022

    December 29, 2022

    ENERGY The government of Romania passed a bill lifting the
    obligation for owners of more than one house to submit sworn statements in
    order to benefit from energy price caps. On the other hand, the government also
    decided that the 10 Eurocent governmental discount on fuel prices will no
    longer be applied as of January 1, 2023. PM Nicolae Ciucă promised that the
    authorities are prepared to reintroduce this measure in the future, should
    prices go up beyond citizens’ spending power.


    FOREIGN POLICY In 2023, ‘Romania’s foreign ministry will continue to
    give special attention to Romania’s Schengen accession and to joining the
    Organisation for Cooperation and Economic Development (OCDE)’. The announcement
    was made by the foreign minister Bogdan Aurescu in a Report on Romania’s
    diplomatic activity released on Thursday. As far as 2022 is concerned, the
    Report says the year was marked at both a regional and a global level by the
    war of aggression launched by the Russian Federation against Ukraine. The
    report also covers the outcomes of the NATO Summit in Madrid in June 2022, and Bucharest’s
    successful hosting of the meeting of NATO foreign ministers and of the Munich
    Leaders Meeting in November 2022.


    COVID The
    European Commission organises today a meeting of healthcare officials to
    discuss a coordinated EU approach of the surge in Covid cases in China, AFP
    reports. After China loosened its strict zero-tolerance rules earlier this
    month, which triggered an explosion of cases in the country, states around the
    world are worried that new variants of the virus would spread from there. Italy
    has already on Wednesday introduced compulsory testing for incoming travellers
    from China, a measure also adopted by other countries, including the US and Japan.


    UKRAINE Ukraine suffered
    ‘massive’ attacks involving over 120 Russian missiles on Thursday morning in
    several cities including the capital Kyiv, the Ukrainian Army and Presidency announced.
    Air raid alerts sounded across the country. According to Ukraine’s head of
    intelligence services, the war is currently at a deadlock, as neither Ukraine
    nor Russia are able to make significant progress. In an interview to the BBC, Kyrylo
    Budanov said Russia was at a dead end, suffering significant losses, but he
    admitted that Ukraine lacks the resources to move forward. He added that Kyiv
    was waiting for more advanced weapons. Ever since October, Russia has been regularly
    hitting Ukraine’s energy and other critical infrastructure. Kremlin warned that
    there will be no New Year ceasefire in Ukraine.


    SOLIDARITY
    In the Republic of Moldova, neighbouring both Romania and Ukraine, lights will
    be turned off in the government’s and other public buildings, in solidarity
    with the millions of people in Ukraine left without electricity, water supply and
    heating. Last week, the Rome Colosseum, the Sydney Opera House, the European
    Parliament and the Wembley went dark in solidarity with Ukraine. In Bucharest, the
    City Hall discontinued holiday lighting for one hour during the winter solstice
    night.


    HANDBALL Romania’s
    men’s handball team takes on Algeria today in the 3rd place playoff
    of the Carpaţi Trophy, a competition
    traditionally hosted by Romania and taking place this year in Oradea. On Wednesday, Romania lost to Slovakia, 31-30, and
    Algeria was defeated by Egypt 38-27. The trophy
    final pits Egypt against Slovakia. (AMP)

  • Romanians pay record-high energy prices

    Romanians pay record-high energy prices


    According to a survey by Friedrich-Ebert-Stiftung Foundation Romania has the highest increase in utility bills in European Union. Utility prices in Romania are presently 124% higher than the reference value in 2015 whereas the European average stays around 110. At the same time the inflation-consumption price ratio stays around 115%, which means the Romanians are shelling out more money to cover all their expenses.


    The sad daily reality is confirming the statistics, which unfortunately arent of much help in this case. And the arrival of the cold season has increased the worries of the Romanians about the soaring prices in electricity, gas or in some cases firewood. There is only one alternative: no money, no electricity and household heating.


    On the other hand, Parliament debates on the latest government ordinance on capping electricity prices are going on. The ruling Social-Democrats say the


    bill must be amended and are asking, among other things, for the capping to be based on this years consumption and not on the one last year, as the document now stipulates to the disadvantage of many Romanians. The co-ruling PNL, wants the capping to be based on the consumption in the past three years. At the Parliament debates the National Authority for Energy Regulation (ANRE) says the most equitable form of capping should be based on a past consumption record as it would be difficult for providers to calculate the right price based on this years consumption.


    Energy providers, which are the main beneficiaries of the soaring prices, say that after the governments ordinance on the present capping came into effect on September 1st, they have already been facing a series of liquidity issues due to delayed settlements. According to them, this situation is creating a major risk of financial blockage, and if an energy provider enters insolvency its customers will be taken over by the other providers under certain conditions.


    But if the problem could be easily solved in the case of the small providers, the situation is going to be completely different in the case of energy providers with millions of customers.


    Besides cold and darkness, the Romanians are also worried about a possible shortage of Romanian food products, as the latest price hikes in energy and fuel are also bearing on the agricultural field. For this reason, farmers have recently called on the government to take quick measures and introduce agriculture among the sectors benefitting from capped electricity prices. Because, they say, protecting agriculture, a vital sector for the populations food security is of strategic importance.


    (bill)


  • July 1, 2022 UPDATE

    July 1, 2022 UPDATE

    SECURITY
    NATO’s deputy secretary general Mircea Geoană said on Friday in Constanţa,
    south-eastern Romania, that the Alliance would continue to support Ukraine and
    that the Black Sea region remains a strategic one in the current military
    context. He took part in the ‘Black Sea Security Summit’, co-chaired by the
    Romanian foreign minister Bogdan Aurescu and the US Senator Roger Wicker.
    Geoana also mentioned that Russia is the greatest threat at present, and that
    China’s expansion is a challenge for NATO’s interests, values and security.
    In turn, Bogdan Aurescu highlighted that trans-Atlantic coordination in the
    face of the Russian aggression was flawless, and that it must remain so. If
    president Putin sought to divide us, he failed, the Romanian diplomat pointed
    out. Secretary of state Simona Cojocaru said Romania hailed Russian forces’
    pull-out from the Serpent Island. Ukraine’s deputy defence minister Oleksandr
    Polishchuk said Russia is willing to make compromises when it sees the free
    world not only having the means to defeat an aggressor, but also ready to take
    action and fight. The event in Constanta was held in Romania for the first
    time, and is the first multi-lateral dialogue in this format between regional
    allies and partners on the topic of security at the Black Sea.


    BACCALAUREATE 75.2% of the
    students sitting the Baccalaureate have passed the exam, the education minister
    Sorin Cîmpeanu announced in Bucharest, after the appeals stage. This year over
    49,000 appeals were submitted, fewer than last year, the education ministry
    said. Prior to this stage, the pass rate in this summer’s exam was 73.3%, the
    highest in the last 10 years, as minister
    Cîmpeanu explained. Eighth-graders have already found out their results
    in the national evaluation. The grades in this exam are the main criterion for
    high school admission. Over 80% of the participants have passed, again a record for the past 10 years.


    FUEL The authorities
    in Bucharest Friday hailed the decision of the main oil companies operating in
    Romania to lower the price for fuel in their stations by approximately EUR
    0.10, in line with the Government’s emergency order. Energy minister Virgil
    Popescu thanked the companies that volunteered to lower fuel prices. PM Nicolae
    Ciucă also welcomed the decision, calling on fiscal and consumer protection
    agencies to monitor fuel prices. Haulers will benefit from a partial subsidy for
    fuel. The PM says the measure was designed to avoid the shortage and rationing
    of fuel, as reported in other countries. Romania now has one of the lowest fuel
    prices in Europe, with stations across the country selling standard diesel for
    approximately EUR 1.7 and petrol for approximately EUR 1.6.


    EMPLOYMENT Hiring new personnel
    in public institutions and authorities in Romania is suspended until the end
    of the year, under an emergency order issued recently by the government. However,
    employment procedures started before 1 July will be completed. Other exceptions are
    also possible, in cases that are thoroughly justified and in compliance with
    personnel budgets. The government suspended hiring in the public sector in
    order to reduce expenditure and meet the budget deficit target.


    TENNIS Romania is left with only one player in the 3rd round of
    the Wimbledon tournament: Simona Halep
    (30 WTA). Halep will play on Saturday against Magdalena Frech (92 WTA) of
    Poland. On Friday, Irina Begu left the competition after being defeated by
    Jelena Ostapenko of Latvia, in 3 sets. (AMP)

  • Measures to subsidize fuel prices

    Measures to subsidize fuel prices

    The government
    in Bucharest on Thursday passed a bill for 0.5 RON subsidies
    from the budget and fuel suppliers per liter of fuel. The decision was made for
    citizens and companies to pay less on fuel, given the latest price spikes in
    this commodity. The measure is valid
    for the next three months and at the end of this period, the government is
    expected to analyze a new set of measures if need be.




    The government admits however that the
    concrete implementation of the bill might be delayed for a while until suppliers
    have updated their fiscal procedures. Moreover, the measure isn’t compulsory,
    as fuel suppliers can choose whether to cut prices by 0.25% or not. However,
    the Romanian Minister of the Economy, Virgil Popescu has given assurances that
    the big chains of suppliers will apply the measure.




    At the same time, authorities have pledged to monitor
    fuel price evolution in the months of July, August and September and to sanction
    any new hike under the ordinance of combating speculation. On the other hand, according
    to state secretary with the Finance Ministry, Mihai Diaconu, the measure to
    subsidize fuel will not increase the budget deficit.




    According
    to our estimates, the calculated impact of the 0.25% subsidy will be offset by
    the fact that swollen prices would have dampened consumption. Lower consumption
    would mean lower excise returns, and in principle we believe these could be
    offset. The measure will boost the economy Diaconu went on to say.




    He added that according to the Finance Ministry estimates,
    state expenses will stay around 800 million lei, which will be added to the
    other 800 million lei the suppliers aren’t going to pay as they will be offset
    by their taxes and duties. The impact would have been bigger had the prices
    gone higher, says Diaconu explaining the Ministry sought to find a simplified
    mechanism to offset these subsidies granted to enterprises.




    Within 15 days since the endorsement of the ordinance, through
    an order by the ANAF president, fuel suppliers will be made available a model
    of application. Then the subsidy will be applied according to their fiscal
    duties, the VAT, corporate tax, etc.
    We estimate that the offset will be done on the VAT side, Diaconu added.


    (bill)

  • Government-generated compensations for the fuel price

    Government-generated compensations for the fuel price




    The
    price of fuels has constantly increased as of late, in Romania. That sparked discontent among car drivers, who staged protests in petrol stations.
    Following a series of talks initiated in the government coalition, Prime
    Minister Ciuca on Thursday announced the pump fuel price would be compensated.
    Therefore, starting July 1st, for three months, the price per liter of
    fuel would be cheaper by 50 bani. The deduction applies for everybody, private
    entities or haulers. Also, the deduction will be separately printed on the cash
    receipt.

    Prime Minister Nicolae Ciuca:


    We have identified, jointly with the specialists, a
    fixed-sum 50-bani compensation solution, to be implemented straight at the gas
    pump. The mechanism by means of which we ensure the stability of the price is
    to be implemented for a three-month period. The compensation will be printed
    separately on each cash receipt issued by the petrol stations.


    The
    compensation will be endorsed by the government through an official document
    next week. According to Prime Minister Ciuca, the Government will come up with
    a mechanism supported by 2 billion lei worth of funding. 1 billion will be
    earmarked from the state budget, while the other billion will be provided by
    the companies in the oil sector. Prime Minister Ciuca went on to say that, when
    the three-month period ends, the opportunity will be examined, to adopt a new
    set of measures. The Prime Minister also stated the Government had a useful
    instrument at its fingertips, namely the government ordinance issued to stave
    off speculative effects. Prime Minister Ciuca was adamant in stating that through
    the set of measures a high-level consumer protection would be provided, against
    untenable price hikes.


    The
    other major party in the governing coalition, the Social-Democratic Party, has
    nonetheless favored price capping as the best solution. The Social Democrats have
    said they complied with the Prime Minister’s decision. However, they said,
    should the prices increase again, they would will reiterate, in the governing coalition,
    their proposal for a set top-up price level or for the reduction of the trade
    markup. The Save Romania Union, in opposition, criticized the Government’s decision.
    Instead, the Save Romania Union has pleaded for a consistent VAT drop for fuels,
    from 19 to 5%.


    In
    turn, President Klaus Iohannis stated the reduction of the fuel excise duty could
    not be implemented. President Iohannis went on to say direct capping or price
    subsidizing were not possible. President Klaus Iohannis also stated Prime Minister
    Ciuca assured him the sum required for the 50-bani compensation could be provided
    by the state budget. Klaus Iohannis also
    said that, ostensibly, the governments had the capacity to reduce the excise
    duty, yet that was not feasible, actually, because of the European legislation.
    President Iohannis went on to say it was easy to change the excise duty whenever an increase
    was implied, but the reduction of the excise duty, that was not possible below
    a certain level.


    (EN)

  • June 23, 2022 UPDATE

    June 23, 2022 UPDATE

    FUEL
    PRICES The ruling coalition has
    reached an agreement regarding an offset mechanism for retail fuel prices.
    After Thursday’s government meeting, PM Nicolae Ciuca announced that for the next
    3 months, starting on the 1st of July, retail fuel prices will be 0.5 leu per
    litre lower. Half of the offset package, which amounts to EUR 400 million, will
    be covered from the state budget, and the balance by companies operating in
    this sector. The mechanism will be regulated under a bill to be passed by the
    government next week.


    CORRUPTION The Romanian agriculture minister Adrian Chesnoiu announced
    stepping down and withdrawing from the Social Democratic Party over a
    corruption investigation. He asked the Chamber of Deputies to lift his
    parliamentary immunity and claimed he had not committed any offence or act of
    corruption. The National Anti-Corruption Directorate had previously requested
    the Chamber of Deputies to lift Chesnoiu’s immunity, in order for him to be
    prosecuted for abuse of office. Judicial sources told AGERPRES news agency on
    Thursday that the investigation concerns the rigging of exams for filling
    public positions.


    BULGARIA In Bulgaria, the Liberal PM Kiril Petkov’s
    cabinet was dismissed through a no-confidence vote, which pushes the country
    into a new political crisis, after 3 rounds of elections held last year, AFP
    and Reuters report. The coalition, formed in December after controversial
    Boiko Borisov’s 10 years in power, broke up in early June over disagreements
    concerning public spending and the country’s stand on North Macedonia’s EU
    accession negotiations. President Rumen Radev will invite parliamentary parties
    to negotiations for forming a new government. If they fail, Bulgaria’s
    Parliament will be dismantled and new elections will be held.

    MOLDOVA The
    state of emergency introduced in the Republic of Moldova on 24th
    February, following Russia’s invasion in Ukraine, was extended on Thursday by
    another 45 days. The request was tabled to Parliament by PM Natalia Gavriliţa, with
    a majority of 59 MPs voting in favour. The Opposition was against the measure,
    accusing the government of incompetence, Radio Chişinău reports. According to
    Moldova’s PM, the state of emergency had to be extended given the persistent
    risks related to Moldova’s energy supplies, border security and the Ukrainian
    refugee crisis.


    MEDAL The Romanian David Popovici, 17, is the second swimmer in history
    to have become world champion in the 200m and 100m freestyle events of the same
    edition of a championship. The athlete has broken three world junior records in
    the World Aquatics Championships underway in Budapest. Romania has another
    representative in the competition, Robert Glinta, who will compete on Friday in
    the 50 meter backstroke race. Glinta ended the 100m race on the eighth
    position. Another two Romanian athletes, Angelica Muscalu and Constantin
    Popovici, will be competing in the dive event of the competition. (AMP)

  • Disputes over fuel prices

    Disputes over fuel prices

    Fuel
    prices have risen substantially over the past few months across Europe, and the
    trend is likely to continue.


    Romania
    covers 70% of its oil demand from imports, and supplies are received
    exclusively via the Black Sea, with transport and insurance costs skyrocketing
    because of the war in Ukraine.


    The parties
    in the ruling coalition are looking for solutions to cut fuel prices, but they disagree
    on what the best option would be. Although they agree that price rises have
    reached a critical point, the Liberals and the Social Democrats have different
    views on how to reduce prices, and pass the responsibility between the Liberal
    energy minister and the Social-Democrat finance minister, with the Social
    Democrats favouring a price ceiling and the Liberals-a new fiscal intervention.


    USR
    party in opposition Tuesday tabled a simple motion against the energy minister Virgil
    Popescu, whom they accuse on incompetence. On top of this, carriers demand a
    solution as soon as possible.


    The Smart
    Energy Association, on the other hand, believes a solution would be to reduce
    excises and VAT. According to a report made public by the association, the
    government is the main beneficiary of the rise in fuel prices, having gained an
    additional EUR 600 million this year compared to the corresponding period of
    2021. The organization also argues that a ceiling on retail prices would be
    more harmful to the economy.


    Meanwhile,
    energy experts claim petrol and diesel prices will continue to go up as long as
    the demand remains high, and a governmental intervention might have undesired
    effects. Another reason for the price increase is the depreciation of the
    Romanian currency. Gabriel Avăcăriţei, editor-in-chief of Energynomics, shared
    his views on the topic to Radio Romania:


    Gabriel
    Avăcăriţei: The upward trend is most likely to keep as long as the demand
    remains high. As long as we continue to see lots of vehicles in the street,
    this means people can afford this high fuel price. And there is something else I
    would like to add. Over the past 10 years, Romanians’ average incomes have
    grown by 100%, to roughly EUR 1,000. So when average revenues go up more than
    fuel prices do, then people’s spending power is higher.


    Gabriel
    Avăcăriței also argues that, although various measures have been taken in
    several European countries, their impact on consumer prices has not been
    substantial.


    Nonetheless,
    tentative protests are beginning to be reported in the country with respect to the
    recent price rises. (AMP)

  • Romania will not face a food crisis

    Romania will not face a food crisis

    After the potassium iodide pill craze and the queues at the gas stations, a new wave of mass panic followed in Romania: recently, the price of edible oil has doubled or even tripled, because people bought very large amounts for fear that, because of the conflict in Ukraine, they might no longer find the product in stores. Ukraine, Romanias neighbor, was, before the moment of Russia’s aggression against it, Europe’s main supplier of crude edible oil, and since the outbreak of the war, its price has doubled. The Romanian economy minister, Florin Spătaru, has announced that controls are starting at the edible oil traders and distributors. He has given assurances that there is no reason to panic, and that Romania has sufficient food reserves.



    Florin Spătaru: There is no reason to worry that we will no longer have stocks of edible oil and we should not react to the doubling or tripling of prices that have no economic justification.



    Florin Spătaru is convinced that these controls will defuse the so-called ‘edible oil crisis’, just as happened in the case of the fuel craze. The agriculture minister, Adrian Chesnoiu, stated, after new discussions with the representatives of the production, processing, and marketing chains, that Romania is not running the risk of a food crisis, because it produces enough to cover its domestic consumption, including in terms of sunflower oil.



    Romania ranks first in the European Union in terms of sunflower production and has also been the largest exporter of seeds at EU level in the last five years. The conclusion of the talks with the representatives of the farmers, of the edible oil producers and of the big commercial networks is that, until the new harvest, Romania has sufficient stocks for the domestic production of sunflower oil.



    Adrian Chesnoiu: “We produce enough food and agri-food products so that we can be independent in terms of foodstuffs. Now, Romania is not running any risk of a food crisis or of major imbalances, because it produces enough food for the consumption needs of the population.



    In turn, the farmers representative, Alina Gheorghiţă, underlined that the vegetable production exceeds the need of the country, which, in her opinion, should increase the peoples psychological comfort and dispel fears of an edible oil shortage. George Bădescu, representing the Association of Large Commercial Networks, has pointed out that buying thoughtfully eliminates the risk of foodstuffs expiring at home. He has recommended consumers to buy moderately and avoid food waste. Rumors in times of war are dangerous, and the authorities are again calling on the citizens to get informed only from official sources, in order to avoid unclear situations. (LS)

  • Panic on the fuel market

    Panic on the fuel market

    A photograph that circulated on social media this week showing 2.2 euros per 1 litre of petrol at a petrol station in the west of the country caused much panic in Romania. Despite a price rise as a result of the war in Ukraine, Romanians could still buy their petrol at 1.6 euros per litre. Long queues thus formed reminiscent of the communist era, when petrol was rationed. The fear of rising petrol costs even took dangerous forms, as some people filled not only their cars fuel tanks, but also other recipients, such as water reservoirs with a capacity of 1,000 litres that were unfit for transporting fuel.



    The authorities immediately began to give assurances that Romania is facing no problem with fuel stocks and that there is no reason for prices to explode. They began to carry out inspections at the chains that sell petrol and to levy fines. The Inspectorate for Emergency Situations is also carrying out checks in cases where people bought and stored petrol in improvised recipients, which is not allowed under the law.



    The energy minister Virgil Popescu said people should not be afraid petrol stations will run out of petrol, after two big producers of oil products gave assurances that they have enough fuel stocks, enough even to supply all petrol stations around the country. The minister has blamed the panic on disinformation, of which there has been a lot recently:



    “There is also no reason why prices should explode, as has happened, and thats regrettable, as is the whole attempt at manipulation. Were in a complicated situation, theres an armed conflict on the Romanian border following the aggression of the Russian Federation against Ukraine, and I personally believe that this was all part of a hybrid war.”



    Prime minister Nicolae Ciucă has called for those responsible for the unjustified rise in petrol costs to be held accountable and for the most severe penalties to be inflicted:



    “I wont allow anyone to take advantage of this situation and, out of greed or for any other reason, to try to destabilise the countrys economy and citizens lives. The institutions in charge will be firm in their checks and will apply drastic penalties on those who break the law.”



    Inspections have been carried out at petrol stations, wholesale suppliers and the companies involved not only by consumer protection agencies, but also by the tax offices anti-fraud directorate. They found that existing stocks, whose price was already set, began to be sold at higher prices. The situation has calmed down in the meantime, both on the fuel market and among the population, with the price of petrol now between 1.6 and 1.8 euro per litre. (CM)


  • March 10, 2022

    March 10, 2022

    FUEL PRICES
    PM Nicolae Ciucă announced thorough
    inspections in all oil companies in Romania, after panic last night caused
    unprecedented queuing in petrol stations. The PM warned that the required
    measures will be taken to curb any illegal, abusive and economically unjustified
    practices. Mr. Ciucǎ made these statements after an emergency meeting with the
    ministers of energy and economy and the heads of the Competition Council, the
    Consumer Protection Authority and the fiscal authority. The institutions have
    already initiated inspections following an unjustified fuel price rise. The energy
    minister Virgil Popescu also posted a message on social media, stating the
    sanctions against those who break the law will be drastic.


    REFUGEES PM Nicolae Ciucă is
    having talks today with the EU commissioner for crisis management Janez
    Lenarčič, who took part on Wednesday in the opening of the European hub for
    humanitarian aid for Ukraine, in Suceava (northern Romania). The EU official
    said he was encouraged by the solidarity shown by the EU and its member states,
    including Romania. A new call-centre has also been opened today in Romania for
    the Ukrainian refugees, with Ukrainian-speaking personnel, among others. Some
    320,000 Ukrainian nationals have entered Romania over the past 2 weeks, and
    nearly 235,000 of them have already left the country.


    COVID-19 Roughly 4,200 new SARS-CoV-2 cases and 62
    related deaths were reported for the past 24 hours in Romania, the Strategic
    Communication Group announced on Wednesday. After almost 2 years in a state of
    alert, Romania lifted all COVID-19 related restrictions on March 9th.
    The authorities announced that those citizens whose ID expired over the past 2
    years have to renew their documents within 3 months. As many as 387,000 people
    must get new identity documents by June 7th.


    SUMMIT EU leaders convene today and tomorrow in Versailles, France, for a
    summit focusing on Europe’s energy independence, on strengthening the bloc’s defence
    and on the EU accession request signed recently by Ukraine. A new plan will be
    discussed, most likely to be funded through a new joint loan, in order to
    address the consequences of the Russian invasion in Ukraine. As regards the
    energy crisis, the European Commission has recently presented the RePowerEU initiative,
    designed to reduce Europe’s dependence on Russian gas, which accounts for over 40%
    of the Union’s natural gas consumption. As for Ukraine, a strengthened
    partnership is being considered, by tightening Kyiv’s ties with the European
    single market and connecting Ukraine with the European energy network.


    PRESIDENCY Romania will be represented in the Versailles summit
    by president Klaus Iohannis. Ahead of the meeting, he took part
    on Monday in a video call with the president of the European Council Charles Michel, and the prime-ministers of the
    Netherlands, Greece, Croatia and Estonia. President Iohannis emphasised the
    importance of firmly maintaining the unity and coordination within the EU and between
    the Union and the US, NATO and other strategic partners, in responding to
    Russia’s aggression against Ukraine. Mr.
    Iohannis also presented the measures taken by Romania to support Ukraine, including
    the set-up of a hub collecting and coordinating international aid to Ukraine
    and Moldova. The president of Romania also emphasised Romania’s support for the
    EU accession requests signed by Ukraine, the Republic of Moldova and Georgia.


    UKRAINE Today’s negotiations
    between the Russian and Ukrainian foreign ministers, Sergey Lavrov and Dmytro
    Kuleba, mediated by Turkey, failed to lead to any progress towards a ceasefire.
    Promises were made to carry on humanitarian efforts to evacuate civilians,
    without any firm commitment on Russia’s part in this respect. Kuleba added that
    a decision was made to carry on talks in this format. In turn, Lavrov continued
    to accuse Ukraine of seeking to use biological and chemical weapons and of
    being manipulated by the West. Meanwhile, air raid sirens sounded once again
    this morning in the Ukrainian capital Kyiv, as the 3rd week of war
    began. According to the Ukrainian army, Russian forces are advancing in an
    attempt to surround the city, and have carried on attacks in other parts of the
    country as well. President Volodymyr Zelensky has accused Russia of war crimes.
    Moscow agreed to a 12-hour ceasefire to enable civilians to leave 6 of the most
    affected areas, but the Ukrainian authorities say steady Russian bombing
    prevented some locals from leaving. On the other hand, Ukraine claims it
    killed, wounded or captured over 12,000 Russian soldiers, and destroyed over 330
    tanks, over 1,110 armoured vehicles and some 130 aircraft. Russia claims to
    have destroyed nearly 3,000 military infrastructure elements in Ukraine. (A.M.P.)

  • February 23, 2022

    February 23, 2022

    UKRAINE – Romanian Prime Minister Nicolae Ciuca has assured his fellow Romanians, in the context of the Ukrainian crisis, that all necessary institutional measures, in keeping with the decisions of the Higher Defence Council, have been taken. He has explained that these steps were taken in coordination with the NATO allies and the EU member states. PM Ciuca called on ministers with attributions in the field to keep monitoring the situation and work co-ordinately and carefully. In another development, the Senate and the Chamber of Deputies in Bucharest will convene in joint session on March 1st, to adopt a political declaration in support of Ukraine’s territorial integrity, sovereignty and independence. On Tuesday, Cristian Chirtes, chairman of the Joint Standing Committee of the Chamber of Deputies and the Senate for the exercise of parliamentary control over the activity of the Romanian Intelligence Service (SRI), said that Romania’s security situation from the perspective of the legal attributions of the Romanian Intelligence Service (SRI) is stable. He also said that, in the context of the Ukrainian crisis, cyber attacks on critical infrastructure, Romanian ministries and agencies, increased.



    SANCTIONS — The United States adopted on Tuesday what American President Joe Biden called a “first tranche” of sanctions, in response to the recognition by Russia of the separatist republics in Ukraine. “We cut off Russias government from Western finance”, Biden said, adding that sanctions also target Russian elites and their family members. The White House leader described the latest events as the beginning of the Russian invasion and announced that an American battalion and several F-35 fighter jets will be deployed this week in the Baltic region and Eastern Europe. He said, however, that he was moving additional troops and equipment to “strengthen” US allies in the Baltic nations on NATOs eastern flank, but made it clear they would not be there to “fight Russia.” The White House has announced that a Biden – Putin summit, a French initiative initially accepted in principle by the two leaders before Russia’s recognition of the separatist republics, was out of the question.



    DECISION – The Bucharest Government is going to pass, in today’s meeting, a decision on the organisation and functioning of the Committee on Monitoring the National Recovery and Resilience Plan (NRRP). The institution in charge with the implementation of reforms and the fulfilment of the objectives assumed under the NRRP is the Ministry of Investment and European Projects, which will monitor the implementation of reforms and investment stipulated in the NRRP with the support of NGOs, trade unions, employers’ associations and the structures of the local public administration.



    INFLATION – The annual inflation rate in the EU increased in January up to 5.6%, from 5.3% in December 2021, according to data made public by the Eurostat on Wednesday. The member state with the highest inflation rates are Lithuania (12.3%), Estonia (11%) and the Czech Republic (8.8%). As compared with the situation in December 2021, the annual inflation rate in the first month of 2022 went down in 8 member states and increased in 19 countries, Romania included, from 6.7% to 7.2%. Romania ranks 11th among the countries with the highest annual inflation rates. The countries with the smallest annual inflation rates are France (3.3%), Portugal (3.4%) and Sweden (3.9%).



    FUEL – The parties forming the ruling coalition in Bucharest have agreed to temporarily cut the fuel excise by 50%. The measure reduces by RON 1 the retail price of petrol and diesel, Finance Minister Adrian Caciu has said. The proposal was supported by the Social Democrats, while their leader, Marcel Ciolacu, said the solution is aimed at preventing prices from going up. In turn, Liberal leader Florin Citu has said that his party agrees, in principle, with any measure that reduces fiscal burden, but has added that, if the retail price of fuel does not go down, somebody will have to take responsibility. The National Liberal Party (PNL), the Social Democratic Party (PSD) and the Democratic Union of Ethnic Hungarians in Romania (UDMR) have also agreed to further subsidise electricity and natural gas bills in the month of April.



    CORONAVIRUS – Romania reported on Wednesday 11,477 new cases of Covid-19 and 119 related deaths, of which 9 from a previous date. Of those nearly 9,000 Covid patients treated in hospital, a little over 1,000 are in intensive care. In terms of vaccination, about 1,000 people had the first shot in 24 hours. The Omicron variant becomes quasi-dominant in Romania, with over 95% of the results indicating infection with this strain of the virus, Health Minister Alexandru Rafila said. In his opinion, in about three weeks the number of infections nation-wide could be small, with hundreds of new daily cases being expected instead of thousands as is the case now. Rafila also said a 6th wave of the pandemic is not to be expected. (EE)

  • Measures to lower fuel and energy prices

    Measures to lower fuel and energy prices


    The leaders of the ruling coalition have agreed on new measures to lower natural gas and electricity bills and to help slow down the rise in inflation seen early this year.



    A temporary 50% cut in the fuel excise is one of the measures prompted by the energy crunch. Data shows that in Romania, fuel costs account for 8% of the market basket, but for households with small and medium incomes the share may reach as much as 12%.



    With this measure validated on Tuesday by the ruling coalition comprising the Social Democratic Party, the National Liberal Party and the Democratic Union of Ethnic Hungarians in Romania, the retail price of petrol and diesel is set to drop by more than RON 1 from around RON 7 per litre at present.



    The measure was backed by the Social Democrats, whose leader Marcel Ciolacu says the move is designed to put a stop to price rises.



    Marcel Ciolacu: “Weve seen the rise in oil prices but we are hoping to balance this by cutting the excise. We are thinking about the problems Romanians struggle with and about ways to stop this surge in prices.”



    The Liberals agree in principle with lowering taxes, excises, contributions and anything that would help ease the fiscal burden, the Liberal leader Florin Cîţu said. He warned however that if retail prices fail to drop, someone must take responsibility.



    Florin Cîţu: “Well see the figures from the finance ministry. I feel these scenarios are optimistic. I hope these measures are not just for the sake of the governments image, because they would cost RON 3-4 billion.”



    By giving up half the petrol and diesel excise for the next 6 months, the government is giving up a share of budgetary revenues, while citizens and companies see their current costs reduced.



    Talks will be held in the forthcoming period with the European Commission and major fuel suppliers to keep fuel prices at a manageable level for all household and corporate consumers, the finance minister Adrian Câciu said.



    The ruling coalition also decided to introduce an emergency order in April, to offset and put a cap on electricity and natural gas bills. (A.M.P.)


  • August 27 – September 2

    August 27 – September 2

    Top diplomatic meeting in Romania


    President Klaus Iohannis has presented the main objectives of Romanian foreign policy in a meeting with heads of diplomatic missions and general consuls abroad. He did so at the Annual Meeting of Romanian Diplomats held this past week in Bucharest. He told the attendees that they were in the best position to support the transatlantic relationship, and emphasized the fact that Romania has to have a unified approach in relation to Russia. The challenges and threats from the east, as well as risks from the south remain the same, said the president, calling on diplomats to have a quick, responsible, and innovative involvement. The head of state also said that the same involvement is needed in terms of domestic challenges within the EU, such as the Brexit and the relaunch of the European project, saying that Romania should contribute actively to the process of reflection regarding the future of the union. Iohannis believes that Europe needs to be stronger, closer to its citizens, with a better presence worldwide:



    Klaus Iohannis: “We should stand next to those member states that act to consolidate the Union. The closer we are to this core of nations, the more we can rely on the European process of decision making, and have better opportunities for development. Europe needs to be at its best in terms of ability to adapt, in order to overcome its present challenges. The instruments of this adaptation should be designed so that development gaps between member states be avoided.



    Foreign Minister Teodor Melescanu said that the preparation for the centennial of the Great Union, the Romanian presidency of the EU, to be taken over in 2019, the candidacy of the country for membership as a non-permanent member of the UN Security Council, and OECD candidacy are the main aims of Romanian diplomats. He added that Romania should take on greater responsibilities in European economic diplomacy, and to better make use of its potential. He spoke of the need to diversify trade relations by engaging emerging regions, by regaining traditional markets, and opening new ones, with potential for growth.



    Changes in justice regulations spark discontent


    The recently proposed changes in the legal framework surrounding the judicial system have sparked strong reactions from various institutions, as well as street protests. The prosecutors with the National Anti-Corruption Directorate have warned that some of the proposals made by the line minister, such as putting judicial investigations under the jurisdiction of the Ministry of Justice of creating a specialized structure for investigating magistrates, may affect the independence and proper functioning of relevant institutions, representing a form of pressure on investigators. Prosecutors are upset at the fact that the judiciary may become politicized, reducing the prerogatives of the NAD. Among the proposals that have sparked protests are the exclusion of the president of the country from the process of appointing the General Prosecutor and the czars of anti-corruption and organized crime directorates. PM Mihai Tudose, mindful of the visibly unfavorable reactions of experts and public opinion, promised that passing the bill would depend on the endorsement of the Higher Council of Magistracy, as well as public opinion. In the meantime, the opposition is preparing a number of actions in parliament. The Save Romania Uion announced it would file a simple censure motion against the minister of justice, and the Liberals said they were considering one as well, but that they were waiting for an opportune moment.



    Excises go up for fuel


    This autumn, excises are up for petrol and Diesel fuel, as ordered by the executive in Bucharest. In order to avoid shocks created by the price increase, the move will be in two stages, the first on September 15 and the second on October 1st. According to Finance Minister Ionut Misa, a sudden increase in prices may cause people to consume less, reducing budget revenue. Transportation companies criticized the government’s decision, saying that this paints a bleak picture for the Romanian transportation sector. They claim that even a Eurocent increase would directly affect the competitiveness of Romanian companies in road transportation.



    A new parliamentary session has started in Bucharest


    Romanian senators and deputies have returned from the summer recess. The first day of work, September 1, has been devoted to organizational matters, with debates on legislative initiatives only starting next week. Parliaments agenda includes debates on emergency ordinances on setting a maximum threshold for the special pensions, a cap of nearly 1,900 euros per month on child rearing indemnity, a 10% increase in police worker salaries and a 15% rise in the salaries of civilian personnel working with national security institutions. The draft law on compulsory immunization, the new pensions law and the laws regulating the judicial system are also to be discussed in parliament.


    (translated by: Elena Enache, Calin Cotoiu)