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May 29, 2022

Petrol price up over 80 pc in three years

The price of petrol has gone up again, reminding of the beginning of last year. The week-end brought a new retail price hike – already the second one this year, according to Ziarul Financiar daily.

The price of a litre of petrol calculated in EUR, on the local market, has gone up by over 84 per cent between the beginning of 2009 and the end of 2011, according to the oil bulletins published by the European Commission (EC). The rise in RON was by 82 per cent, comparing Petrom prices at the beginning of 2009 and on the first day of 2012. In the last three years of crisis, the Romanian economy as dropped by 7 per cent. EC data shows that, on January 12, 2009 a litre of petrol cost about EUR 0.66 (RON 3) and on December 19, 2011 over EUR 1.2 (RON 5.6). These price rises place Romania on the second place in the EU-27 in terms of petrol price rises, the first place going to oil companies in Greece, a country where the price of this type of fuel grew by almost 98 per cent in the analysed period. The podium is completed by Latvia, however at considerable distance from the two ‘best-ranking’ candidates, with ‘just’ 67.8 per cent. The tail of the standing is occupied by oil companies in Germany and the Netherlands which, in the period from January 12, 2009 to December 19, 2011, raised the price of a litre of petrol by 30.6 per cent and 27.1 per cent respectively, according to European Union (EU) statistics.

‘Things appear to be pretty clear. There is a monopoly position. Expenditure is like in the East, prices are like in the West and profits are like in Africa. We have proposed a number of measures none of which has been considered. One was to tax oil company profits generated from crude price volatility,’ says Cristian Parvan, the Secretary General of the Association of Businesspeople of Romania (AOAR).

On the other hand, the state has no interest in cutting the price of petrol, or at least this is what appears to be the case from calculations. Almost 60 per cent of the retail price of petrol goes to the state in the form of taxes and excise duties, anetena3.ro reports. The producer’s price is approximately EUR 370/tonne. A simple calculation will show that, if we add to the producer’s price the excise duty, other taxes and VAT, the price of petrol amounts to approximately EUR 1,205/tonne, of which over EUR 830 feed the state’s accounts.

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