The biggest fuel distribution companies on the Romanian market say the rise in excise duties as of the beginning of next year could bring about a 5%-8% hike in pump prices, which will have a major impact on demand. On the other hand, there are many factors that could lead to additional price increases, the price of oil being the most important.
“The main effect of the RON depreciation will be seen in the 2010 excise level. It will rise by 3.6% in absolute terms in euros but, due to the RON depreciation, the excise rise in real terms in RON will be of around 18%,” say representatives of MOL Romania, a company with almost 600 million euros in business.
As of 1 January 2010, the excise on unleaded petrol will rise from 436 euros per tonne to 452 euros per tonne, and in the case of diesel, from 336 to 347 euros per tonne. Although the rise in euros is small, the depreciation of the RON will generate an 18.4% rise in petrol excises and an 18% rise in the case of diesel oil. The excise is calculated at a price of 4.2668 RON per euro for 2010, whilst for 2009 the exchange rate was 3.7364 RON/euro.
“The excise on Efix petrol accounts for 34% of the price of pump fuel, while overall taxes make up 47%. The excise on Efix diesel oil accounts for 27% of the price, whilst overall taxes account for 44% of the price of fuel,” explain representatives of Rompetrol, the second-largest player on the Romanian market. The excise rise alone, if the other elements that make up the pump price were to remain unaltered, would bring about an over 6% rise for petrol and an almost 5% rise for diesel oil.