It is “critical” to find ways to prolong the price-capping mechanism for basic goods until next spring, prime minister Marcel Ciolacu said in a press conference on January 25, Bursa.ro reported.

The scheme, which caps the markup charged by food processing firms, distribution firms and retailers, came into force last August and was prolonged for another three months at the end of October last year. It thus expires at the end of January.

The retailers’ representatives have repeatedly warned against the side effects of the mechanism enforced by the government: higher prices of unregulated goods and possibly unsatisfied demand for some regulated goods.

Minister of agriculture Florin Barbu announced last week that he opted to continue the scheme and extend the list of regulated goods, but the final decision would only be made after talks with the companies involved and with prime minister Marcel Ciolacu. 

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)