Petroleum price hike affects imports

A 10-dollar increase in the price of a barrel of oil will add 300-400 million dollars (243-345 million euros) to the cost of Romania”s petroleum imports every year, said Dinu Patriciu, the Rompetrol Group chairman. “This is obviously an extra burden for Romania, which has to import more than half of its energy resources,” Patriciu said, while speaking of the long-term effects of the unprecedented hike in petroleum prices on the international markets. The short-term effects would not be significant, he said, with the exception of rises in petroleum product prices. “The 10% rise in the petroleum price means a 3 to 4% rise in petroleum product prices.” Up to 70% of the price at the pumps is determined by tax and duties, meaning that the remainder is 80% dependent on the petroleum price, Patriciu explained. He believes that in the current price climate the impact on inflation and macroeconomic indicators will be negligible.