Diesel prices in Romania are set to increase from 1 July, as a temporary reduction in fuel excise duties expires. Average pump prices are expected to rise above 1.81 euros per liter, reversing the short-term relief introduced earlier this year.
The tax cut was implemented in early April by the government led by Ilie Bolojan, in response to rising oil prices driven by geopolitical tensions involving Iran. In addition to the reduced excise duty, authorities also lowered the solidarity contribution paid by energy companies. Together, these measures reduced fuel prices by approximately 0.068 euros per liter, including VAT.
With the support package expiring on 30 June, excise duties will automatically return to their previous levels unless new policy action is taken. However, Romania’s current caretaker government does not have the authority to extend or modify the measure.
On 29 June, the average retail price of diesel stood at around 1.76 euros per liter. Analysts expect the reinstatement of full excise duties to push prices above 1.81 euros per liter from the beginning of July, marking a noticeable increase for consumers and transport operators.
The situation is further complicated by ongoing political uncertainty. Negotiations to form a new government are still underway, but discussions between parliamentary parties and President Nicușor Dan have not yet resulted in a fully empowered cabinet capable of adopting fiscal adjustments.
The expected price increase comes even as international crude oil prices have recently eased following diplomatic efforts to reduce tensions between the United States and Iran. Despite this, Romania’s fuel market is becoming relatively more expensive within the European Union. Recent data shows that petrol prices are already above the EU average, while diesel prices are close to the mid-range of the bloc. In previous years, Romania—along with Bulgaria—was frequently among the lowest-cost fuel markets in Europe.
