Radio România Internațional

Tag: fuel prices

  • October 28, 2024

    October 28, 2024

     

    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.

     

    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 takes on Yue Yuan (China) today, in the first round of the WTA 250 tournament in Hong Kong. This is for the first time that the Romanian player (aged 33, currently no. 869 WTA) plays against Yuan (26, no. 44 WTA). If she wins, Halep is next to take on the winner of the match between Nao Hibino (156 WTA) and Aliaksandra Sasnovich (143 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). (AMP)

  • May 5, 2023

    May 5, 2023

    CORONATION – Romania’s
    president, Klaus Iohannis, is attending the coronation of King Charles III of
    the United Kingdom in London. On Friday, the president is attending the
    reception of heads of delegation at Buckingham Palace, while on Saturday he
    will be attending the coronation ceremony. Custodian of the Crown of Romania,
    Princess Margareta and Prince Consort Radu attended a number of related
    ceremonies yesterday. On Saturday morning, the King’s Coronation procession
    will take King Charles III and Queen Consort Camilla from Buckingham Palace to
    Westminster Abbey. Romanian media describes King Charles as a great friend of
    Romania, a country where he holds several estates and which he has visited
    periodically in the last two decades. King Charles has constantly helped
    preserve and popularize traditions and customs in Transylvania, which remain an
    object of fascination. Maj. Gen. Christopher John Ghika, the general commander
    of the Household Division, which guards the British monarch and the royal
    palaces, will oversee the coronation of King Charles III. Christopher Ghika is
    a princely scion of the Romanian Ghica dynasty and the current commander of His
    Royal Majesty’s guard. Around 2,200 people will get to attend to coronation of
    King Charles III in the Westminster Abbey ceremony, far fewer than the 8,000 in
    attendance for Queen Elizabeth’s coronation in 1953. For the first time in
    history, the American president will not attend the coronation of a British
    sovereign. Representing Joe Biden will be the First Lady, Jill Biden.


    FUEL – Fuel prices continue to drop in Romania, standing at
    an average of €1.33 for both gasoline and Diesel. In Bucharest, prices for
    standard gasoline range between €1.28 and €1.32, while standard Diesel sells
    for €1.28 up to €.1.32. Romania ranks 2nd and 3rd at EU
    level in terms of the cheapest price for gas and Diesel, respectively.


    FUNDING – The government on Thursday adopted the
    roadmap for the signing of funding contracts addressing 27 hospitals.
    Procedures are expected to be finalized by the end of the year. 7 new county
    hospitals will be built and equipped, while 20 public hospitals will be fitted
    with modern equipment. Total funding provided by the EU and the European
    Investment Bank stands at €2 bln.


    MOLDOVA – For security reasons, the Republic of Moldova
    will shut down its airspace to all civilian aircraft on June 1, when the
    country will host a summit of European leaders, the Civil Aviation Authority of
    Moldova has announced. Only aircraft carrying official participants will be
    allowed to land. All drones will also be grounded starting May 31. Chișinău
    expects over 50 heads of state and government and representatives of EU
    institutions to attend the European Policy Community Summit, bringing together EU
    members and other 18 countries in Europe. The Republic of Moldova has been
    affected by Russia’s war in Ukraine, which the pro-European president Maia
    Sandu has repeatedly condemned. Since the start of the conflict in Ukraine,
    missile debris has also crashed on Moldovan territory. In other news, the EU
    Foreign Affairs Council has adopted the disbursement of €40 mln to support the
    Moldovan defense sector, and a similar €30 mln aid package addressing Georgia.
    The funds will be earmarked under the European Peace Facility, which is also
    used to provide military assistance to Ukraine. The measure will finance non-lethal
    equipment, supplies and services, to the units of the Armed Forces of the
    Republic of Moldova including technical training, where required.


    SHOOTING – A shooter killed at
    least 8 people and wounded 13 in a drive-by shooting in Mladenovac, a town 60
    km from Belgrade. This is the second mass-shooting in two days in Serbia. The
    suspect, a 21-year-old man who fled the attack scene, is in police custody. The
    reasons of the attack remain unclear. Serbia’s Interior Minister, Bratislav
    Gaąić, described the shooting as a terrorist attack without providing
    additional details. We recall that less than 48 hours before the attack, a
    teenager killed 8 of his peers and a security guard in a school in Belgrade.
    The Serbian Government is considering tougher gun laws.


    FESTIVAL – Nearly 40 plays will be
    performed on stage at the Fest Monodrame Festival held in Bacău (northeast), a
    traditional event organized by the local Bacovia Theatre. 11 Romanian actors
    and a Ukrainian emeritus actor are competing for the grand prize. Amalia takes
    a deep breath, an independent production of the Anti-Theatre Association of
    Brașov, will open the festival tonight. This year as well the festival includes
    a number of remarkable productions and features special guests such as Marcel
    Iureş, Marius Bodochi or Florin Piersic Jr. The latest production of the
    Bacovia Theatre, The Artists’ Factory, will be premiered on May 10 in closing
    of the festival. Admission is free-of-charge, although preliminary online
    registration of the Theatre’s webpage is required. (VP)





  • July 1, 2022

    July 1, 2022

    HEAT -
    Code red, orange and yellow alerts against extreme heat have been issued for
    the entire country. Experts warn temperatures will reach and even exceed 40
    degrees Celsius. The Sibiu municipality has set up 12 cooling centers, fitted
    to provide water and relief from the heat. The centers were created inside the headquarters
    of a number of public institutions and in three large markets. In Mediaș, the
    authorities set up centers where people can get water. First-aid tents and
    water-distribution centers were set up by local authorities across Bucharest as
    well. Extensive drought has been causing damage to farming regions across the
    country.




    CSCE -
    Romania’s Foreign Minister, Bogdan Aurescu, is today co-chairing, alongside US
    Senator Roger Wicker, the panel titled Black Sea Security Summit, organized
    by the US Congress Commission for Security and Cooperation in Europe (CSCE),
    also known as the Helsinki Commission. The event is held for the first time in
    Romania and offers a platform for multilateral dialogue between regional allies
    and partners, focusing on security in the Black Sea Region. Attending the event
    will be Foreign Minister Bogdan Aurescu and representatives of the Helsinki
    Commission, high-ranking officials from Romania and states in the region, as
    well as other key partners, including from NATO. The initiative follows the
    significant deterioration of the security context in the Black Sea region as a
    result of the Russian aggression in Ukraine. The purpose of the Helsinki
    Commission is to raise awareness regarding troubling developments with a
    significantly high negative impact for the entire international community at a
    number of levels.




    FUEL -
    The authorities in Bucharest today hailed the decision of the major oil
    companies operating in Romania to lower the price for fuel in their filling
    stations by approximately 0.10 EUR, in line with the Government’s emergency
    decree. Energy Minister Virgil Popescu thanked the companies that volunteered
    to lower the price for fuel. In turn, Prime Minister Nicolae Ciucă hailed the
    decision, calling on fiscal and consumer protection agencies to monitor the
    evolution of fuel prices. The Prime Minister recalled that state institutions
    are now allowed to intervene. Haulers will benefit from a partial subsidy of
    fuel. The Prime Minister 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. Filling stations across the country sold
    standard Diesel for approximately 1.7 EUR and gasoline for approximately 1.6
    EUR.




    EU COUNCIL
    – The Czech Republic is taking over the six-month rotating presidency of the
    Council of the European Union. This is the second time this country is taking
    over this responsibility since it joined the EU in 2004. To mark this event,
    European Commission president, Ursula von der Leyen and the Czech Prime
    Minister, Petr Fiala, are today meeting at Litomyšl Castle, a UNESCO World
    Heritage Site located some 160 kilometers from the Czech capital-city Prague. The
    presidency adopted the motto Europe as a task, inspired from a speech
    delivered by the ex-president Vaclav Havel. During its term in office, the
    Czech Republic will focus on the war in Ukraine and its consequences, seeking
    to manage the flow of refugees and improve energy security. The Czech
    Presidency will organize a number of ministerial meetings and at least one
    summit of the 27 Member States.




    ENERGY
    EXPORTS – Ukraine has started exporting electricity to the European Union
    via Romania, Ukraine’s president, Volodymyr Zelensky announced on Thursday
    evening. The President said Ukraine is preparing to up its deliveries of
    electricity, which he says are capable of replacing a substantial part of the
    Russian gas consumed by Europeans. Ukraine was connected to the Russian
    electricity grid prior to its invasion on February 24, after which date it
    functioned independently. In mid-March, the Ukrainian electricity network was
    connected to the European one. As of today, Ukraine can export electricity to
    the EU market. It will provide an additional source of electricity for the EU.
    And much-needed revenues to Ukraine, European Commission President Ursula von
    der Leyen said in a tweet on Thursday.




    WIMBLEDON
    – Two Romanian players will be competing in the third round in the women’s
    singles at Wimbledon. Simona Halep (18 WTA) will take on Magdalena Frech of
    Poland (92 WTA), while Irina Begu (43 WTA) will go up against Jelena Ostapenko
    of Latvia (17 WTA).

  • Concerns regarding fuel prices

    Concerns regarding fuel prices

    Romania continues to look for alternatives to Russian oil, after the European Union reached a compromise to discard most of the oil imports from Russia. Meanwhile, fuel prices continue to grow, considering Bucharest is importing 70% of its oil demand. 40% is imported from Kazakhstan, while 30% from Russia. Although at European level, Romania is one of the countries with the lowest shares of dependency on Russian energy imports, the Government must intervene to put a stop to the string of price hikes sweeping the entire economy. According to the latest European report, also targeting non-EU countries, fuel prices exceeded 2 EUR in nine states, the highest level being reported in Norway, where gas stood at 2.6 EUR, while Diesel stood at 2.3 EUR.




    Of the 40 countries analyzed, the lowest prices were reported in Hungary, where fuel was capped at 1.22 EUR. And prices continue to go up. Last month, the government in Bucharest adopted the payment of a 0.10 EUR subsidy per liter of fuel for all haulers and distributors in Romania, although they say this measure is not enough. Still, some 3,000 haulers and passenger transporters will benefit from subsidized fuel prices as part of a 60 million EUR state scheme. Two months ago, the government also discussed the reduction of excise duties and VAT for fuel, although no decision was taken.




    According to financial experts, the reason is that the Romanian budget, already facing tremendous pressure from inflation and the poor tax collection rate, cannot risk losing the only certain revenues derived from the payment of excise duties or VAT for fuel. Under these circumstances, transporters have called on the authorities to urgently cap the prices for fuel, similar to the model in neighboring states, warning that new month fuel prices might again go up. The Federation of Romanian Haulers announced protests will be staged in filling stations across the country, urging businesses to support their actions by any legal means possible. The first protests have already been staged across the country. In Botoșani, for instance, the local media reports that several drivers have deliberately blocked access to a filling station, refueling only a few milliliters of gas and then cleaning their windshields, thus delaying the filling process. A similar action was staged in Târgu Jiu, where drivers stopped in filling stations only to wash their windshields. The protest action was distributed on social media. (VP)


  • The effects of energy and fuel price rises

    The effects of energy and fuel price rises

    The month of October will bring Romanians higher electricity and gas bills, as well as more expensive fuels along with the coming into effect of the second increase in the excise duty.


    As regards the price of electricity, the National Energy Regulatory Authority (ANRE) has decided that, as of October 1st, domestic consumers will have to pay more, by 0.03 lei per kilowatt. The president of the agency, Niculae Havrilet, has explained that this will translate into an additional 3.45 lei (0.75 Eurocent) per 100 kWh every month. Also, the agency vice-president, Emil Calota, has announced that the price of gas for domestic consumers will increase by an average of 6% in the fourth quarter of the year. A final decision in this respect is to be made this week.



    The first increase was operated on September 15th, when the excise duty on fuels went up by 0.16 lei per liter, which triggered an increase in the price of fuels charged by gas stations. Therefore, it is very likely that the effects of the second growth will be the same. According to companies operating in the field, the effect of the first measure was an increase by 9 bani (2 Eurocents) per liter, but prices were changed even before the official coming into force of the decision.



    Against this background, the price of the cheapest types of fuel has reached 5 lei per litter, as compared to 4.7 — 4.8 lei in mid September.



    However, this will not just mean that Romanians will have to pay more in order to use their personal vehicles. Electricity, gas and fuels are used in each and every sector of the economy, so the effect will be manifold and everything, products and services, will become more expensive.



    The explanation is simple: they influence production costs, the costs of transportation, trade and everything will be reflected in prices. Dragos Frumosu, the president of the trade union federations in the food sector has stated that the prices of all foodstuffs will get by 5-6% higher, in particular meat and meat products, dairy products and bread. Also growing will be Romanians’ interest rates, given that the Romanian Interbank Offer Rate (ROBOR) has also been increased to the double it was early this year.