The Romanian Government has decided to delay the diesel excise hike by three months, during which time it plans to find other solutions for raising more funds for the state budget.

The excise hike was the reason Romanian president Traian Basescu recently refused to approve both the Memorandum with the International Monetary Fund (IMF) and the 2014 budget.

The Romanian Prime Minister Victor Ponta however said the Government will only apply the 7 eurocents excise hike to gasoline, but will delay applying the diesel excise hike by three months. The PM further explained that transporters, who use diesel, will in fact not pay this excise themselves, as it will be introduced in the price of general goods. The Minister Delegate for Budget Liviu Voinea has left for Brussels to talk about this proposal with European Commission officials, as well as consult with the IMF.

The recent decision however did not make the Romanian president entirely happy, but he said it showed there was a way for dialogue. Basescu added that he still stands by his initial position that Romania should not introduce extra excises for gasoline nor diesel.

Basescu, who has already signed off the social insurance budget, which covers state pensions, said he would reject the 2014 budget law, which he has received for approval.

On Monday, Romanian transporters started a strike against the planned excise hike, among others.

editor@romania-insider.com