Transporters complain about gas price up 30 percent, officials blame past ruling

12 January 2011

The price of gas went up by 30 percent in Romania last year and, without taxes, it is higher than in other European countries without resources and without maritime access, according to the National Union of Transporters in the country. Taxes- excises and VAT- make up for around 45 percent of the price of gas in Romania.

The reference price of gas in Romania is of EUR 1.179 per liter with taxes and excises (the cheapest type of gas), while the price without excises and VAT is of EUR 0.64/liter.  The price of gas in Romania has grown in the last two years, from around RON 3 per liter in 2008, to RON 5.6 per liter this year.  The reference price of gas in Romania stays around the average in the EU, which is of EUR 0.58 per liter, but it is still higher than in Austria, France, Italy or UK.

The price of gas in Romania has recently become subject of media debate, after taxi drivers announced they would boycott gas stations this week. Their initiative was joined by car drivers across the country. Moreover, Romanian president Traian Basescu, Prime Minister Emil Boc (Of the Democratic Liberal Party - PDL) and Finance Minister Gheorghe Ialomitianu have all mentioned the fact that the current price of gas is due to the contracts signed during the PSD ruling, when Adrian Nastase was Prime Minister. They were referring to the oil and gas company Petrom privatization contract, which, according to Emil Boc, was sold under the market price and with no future control over the royalties. Petrom was privatized in 2004, when the Romanian Government sold 51 percent of the company for EUR 668 million to Austrian OMV, according to the privatization contract. In response to public allegations, former prime minister Adrian Nastase cites the 2008 Senate investigation commission, which looked into the Petrom privatization file and didn't find any breaches of the legislation. In 2008, National Liberal Party member Calin Popescu Tariceanu was Prime Minister and the Romanian Government was shared by PNL and PDL parties.

editor@romania-insider.com

Normal

Transporters complain about gas price up 30 percent, officials blame past ruling

12 January 2011

The price of gas went up by 30 percent in Romania last year and, without taxes, it is higher than in other European countries without resources and without maritime access, according to the National Union of Transporters in the country. Taxes- excises and VAT- make up for around 45 percent of the price of gas in Romania.

The reference price of gas in Romania is of EUR 1.179 per liter with taxes and excises (the cheapest type of gas), while the price without excises and VAT is of EUR 0.64/liter.  The price of gas in Romania has grown in the last two years, from around RON 3 per liter in 2008, to RON 5.6 per liter this year.  The reference price of gas in Romania stays around the average in the EU, which is of EUR 0.58 per liter, but it is still higher than in Austria, France, Italy or UK.

The price of gas in Romania has recently become subject of media debate, after taxi drivers announced they would boycott gas stations this week. Their initiative was joined by car drivers across the country. Moreover, Romanian president Traian Basescu, Prime Minister Emil Boc (Of the Democratic Liberal Party - PDL) and Finance Minister Gheorghe Ialomitianu have all mentioned the fact that the current price of gas is due to the contracts signed during the PSD ruling, when Adrian Nastase was Prime Minister. They were referring to the oil and gas company Petrom privatization contract, which, according to Emil Boc, was sold under the market price and with no future control over the royalties. Petrom was privatized in 2004, when the Romanian Government sold 51 percent of the company for EUR 668 million to Austrian OMV, according to the privatization contract. In response to public allegations, former prime minister Adrian Nastase cites the 2008 Senate investigation commission, which looked into the Petrom privatization file and didn't find any breaches of the legislation. In 2008, National Liberal Party member Calin Popescu Tariceanu was Prime Minister and the Romanian Government was shared by PNL and PDL parties.

editor@romania-insider.com

Normal

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