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May 12, 2021

Road carriers: Increase in Diesel fuel excise tax could result in loss for state budget

The National Union of Road Carriers of Romania (UNTRR) agrees with the decision to postpone the implementation of the additional 7 eurocents Diesel fuel tax and requests that this measure be annulled. Every year, Romanian consumers use approximately 7 billion liters of fuel, of which 5 billion liters is Diesel fuel and 2 billion liters is gasoline. If the state goes through with increasing the Diesel excise tax by 7 eurocents/liter, Romanian road carriers who handle international transports will be forced to purchase fuel from outside the country. Thus, any hypothetical gain for the budget revenue will be non-existent if, for instance, 13 percent of the current quantity of Diesel fuel sold in Romania moves abroad. The 7 eurocents added to the current excise tax could mean an extra 8.68 eurocents (excise tax + VAT) for the budget revenue for each liter of Diesel fuel. Mathematically speaking, the additional amount would be EUR 430 million, assuming Diesel fuel consumption levels remain unchanged.

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