The government has practically doubled in the last seven years the level of fees, and the RON depreciated in nominal terms over the same period, which makes the reduction of oil prices on international markets not have a major effect in Romania, according to profit.ro.

The recent decrease of international oil price brought in the collective memory the days when gasoline could be purchased with 3 RON/liter. But this nostalgia is not only among the population, but, paradoxically, also among the authorities, who are primarily responsible for fuel price increases in recent years. The Government and the Competition Council have repeatedly stated that they watch carefully how companies translate the low oil priced into end prices for fuel.

In general, public opinion tends to believe that any reduction of the oil price comes with a fally for fuel price by the same percentage. But the oil price is only one of the factors that influence the pump price, together with the RON/dollar exchange rate, evolution of demand, supply, costs (transport, storage, etc.) and, above all, the level of indirect taxation (excises plus VAT).

Moreover, if we assume that oil would cheapen by 99.99% and would reach virtually 0 dollars per barrel, and other costs would in turn be equal to 0 RON, a liter of petrol would still cost 2.52 RON, due to the related excise duty and value added tax (VAT) relating. The government, together with oil development, is the main responsible for doubling of fuel prices between 2008 and 2014.

The tendency to assume that any decrease of price that oil registers should be visible in the pump price is based on price developments in the period December 2008 – June 2014. In December 2008, Brent oil stood at 45 dollars, and a liter of gasoline was 3 RON (3.2 RON for diesel). In June 2014, the oil barrel reached 110 dollars, while a liter of gasoline reached the maximum level recorded in Romania – 6.31 RON (6.29 RON for diesel). In other words, a doubling of oil prices doubled the price of fuel.

But, at least for half the fuel price increase, companies are not responsible, but the Government, which in the meantime raised the excise on petrol, and the VAT. If in December 2008, the Government collected from every liter of gasoline sold excise duty and VAT amounting to 1.68 RON (1.72 RON for diesel), in 2014, after the increase of excise duties, after introducing the controversial over-duty (which will remain in force next year, decided the political parties) and the VAT increase, the treasury took no less than 3.25 RON/liter of gasoline (3.12 RON/liter of diesel), according to profit.ro.