The Ministry of Finance published on Thursday evening the draft Emergency Ordinance that provides for the temporary reduction of the excise duty on standard diesel by 0.3 lei/liter and the establishment of a solidarity contribution applicable to economic operators that exploit and/or process crude oil extracted from the territory of Romania, in situations where the average monthly price of Brent crude oil exceeds the threshold of 70 dollars/barrel.
According to a press release from the Ministry of Finance, transmitted to Agerpres, the estimated budgetary impact of the excise duty reduction is approximately 610 billion lei, while the income from the solidarity contribution is evaluated between 70 and 650 billion lei, depending on the evolution of the oil price.
The regulatory act is intended to mitigate the impact of sudden price increases on the fuel market, caused by international instability in the Middle East and disruptions to global oil flows.
“Through these measures, we intervene to limit the effects of rising fuel prices on the population and the economy. The reduction in excise duty will directly contribute to the decrease in the price at the pump, and the solidarity contribution allows for a fair redistribution of exceptional revenues generated in the current crisis context,” said Finance Minister Alexandru Nazare in a statement.
Thus, the excise duty on standard diesel is temporarily reduced by 0.3 lei/liter, starting with the date of entry into force of the regulatory act, for the duration of the crisis situation on the crude oil and petroleum products market. The measure aims to limit inflationary pressures and stabilize transport and distribution costs, essential for the entire economy.
“Given the need to adopt, without delay, certain measures that will allow mitigating the effects of price increases on consumers and economic operators, it is necessary to temporarily reduce the excise duty level on standard diesel, from the date of entry into force of this emergency ordinance, during the crisis situation on the crude oil and/or petroleum products market, according to Government Emergency Ordinance no. 19/2026, by 0.3 lei per liter. Postponing the regulatory intervention would lead to the perpetuation of an immediate negative impact on the cost of living and operating costs in the economy, with the risk of amplifying inflationary pressures and affecting essential economic activities. In the absence of immediate intervention, there is a risk that price increases will consolidate in the economy, with negative effects on the population, on supply chains and on fuel-intensive economic sectors,” the explanatory note accompanying the project states.
Considering the share of fuels in the structure of economic costs and their role in the normal functioning of supply chains, maintaining a high price level for a long period is likely to amplify inflationary pressures, reduce purchasing power and affect the competitiveness of essential economic activities, the document states.
Currently, the excise duty level applicable to diesel is established by Law no. 227/2015 on the Fiscal Code, as subsequently amended and supplemented, and is 2804.29 lei/1000 liters, respectively 3318.74 lei/ton.
At the same time, a solidarity contribution is established applicable to economic operators that exploit and/or process crude oil extracted from the territory of Romania, in situations where the average monthly price of Brent crude oil exceeds the threshold of 70 dollars/barrel.
“For companies that sell crude oil in an unprocessed state, the solidarity contribution is calculated by applying a percentage of 60% of the revenues from the marketing of this crude oil. The contribution is designed as a temporary and proportional mechanism, applied exclusively to exceptional revenues generated by the international context, and has a progressive nature, with rates ranging from 1.5% (for prices above 70.01 dollars) to a maximum of 9.9% (for prices exceeding 140 dollars/barrel)”, specifies the Ministry of Finance.
Currently, economic operators operating in the natural resources exploitation sector, including crude oil, apply the provisions of Government Ordinance no. 6/2013 on the establishment of special measures for the taxation of the exploitation of natural resources, other than natural gas.
According to the provisions of Government Ordinance no. 6/2013, a 0.5% tax is applied to income obtained from the exploitation of natural resources, as follows: economic operators that exploit natural resources and exploit them as such or following a processing/preparation/sorting process without being used by them to obtain other types of products owe tax on the income obtained from their exploitation; economic operators that use the exploited natural resources as raw materials to obtain other products (for example, energy products) and whose price is quoted on the stock exchange owe tax on the part of the income resulting from the exploitation of finished products, corresponding to the value of the raw materials.
The solidarity contribution is established during the declaration of a crisis situation on the crude oil and/or petroleum products market, according to Government Emergency Ordinance no. 19/2026 on the declaration of a crisis situation on the crude oil and/or petroleum products market, respectively during the period April 2 – June 30, 2026.
The solidarity contribution is due exclusively for the months in which the average monthly price of the Brent reference crude oil (ICE Brent Crude Futures, front-month contract) exceeds the level of 70 dollars/barrel, calculated as the arithmetic average of the daily closing quotations of the reference month.
“The threshold of $70/barrel represents the level at which the revenues of operators processing crude oil from national production significantly exceed production costs and normal refining margins, generating a surplus that can be qualified as exceptional income. The choice of this threshold is based, on the one hand, on the production cost of crude oil from Romanian sources. The full production cost (lifting cost plus depreciation costs, transportation, ecological rehabilitation and royalties) is, according to sectoral data, in the range of $25-40/barrel for onshore fields and $35-55/barrel for offshore ones. At a Brent price of $70/barrel, even the most expensive segment of production remains profitable, with a margin of $15-35/barrel,” the project initiators explain in the document.
Also, regarding the typical refining margins (crack spread) for Central and Eastern European refineries, they are in the range of 5-15 dollars/barrel under normal market conditions. At a Brent price of 70 dollars/barrel, the combined production plus refining margin allows for full cost recovery and a reasonable profit, without applying the contribution.
According to the cited source, the average price of Brent crude oil in the period 2015-2024 was approximately 65 dollars/barrel. The threshold of 70 dollars/barrel is slightly above this long-term average, indicating that the activation of the contribution occurs only when the market exceeds the level considered normal, not when it operates within usual parameters.
Last but not least, the progressive structure of the quotas was taken into account. The fiscal mechanism is constructed in such a way that the threshold of 70 dollars/barrel does not generate actual tax obligations in itself – tax rates start at 70 dollars/barrel and gradually increase.
“Therefore, the threshold of 70 dollars/barrel is a level that ensures a wide margin of profitability (50+ dollars/barrel above onshore production costs). The solidarity contribution is progressively calibrated on a grid of rates ranging from 1.5% (Brent above 70 dollars/barrel) to a maximum of 9.9%, ensuring the proportionality of the tax burden with the level of exceptional profit. The contribution gradually increases as the distance from the threshold increases, reaching significant rates only at substantially higher price levels,” the document also states.
For taxpayers who extract crude oil that is sold unprocessed, the solidarity contribution is calculated by applying a percentage of 60% of the income from the sale of this crude oil. Revenues are determined by multiplying the monthly quantity of crude oil expressed in barrels, sold from own production, by the difference between the selling price/barrel and the value representing the equivalent in lei of the quotation of 70 dollars/barrel.
Energy products are: gasoline, diesel, kerosene, fuel oil, LPG, as defined according to the tax legislation on excise duties.
According to the substantiation note, the amounts paid as solidarity contribution represent deductible expenses when determining the fiscal result, within the meaning of Law no. 227/2015 on the Fiscal Code, with subsequent amendments and supplements.
Revenues that are taken into account in the calculation of the solidarity contribution are excluded from the calculation of the tax provided for by Government Ordinance no. 6/2013.
“The solidarity contribution is calculated, declared and paid monthly, until the 25th inclusive of the month following the month for which it is due,” the draft also states.
Also, economic operators will be required to organize separate accounting, fiscal and operational records showing, as appropriate: the quantity of crude oil from national production traded/processed; the total quantity of crude oil processed; the resulting energy products and their destination; the income obtained from the trading of energy products, broken down by product categories.
The solidarity contribution is revenue to the state budget and is administered by the National Agency for Fiscal Administration, according to Law no. 207/2015 on the Fiscal Procedure Code, as amended and supplemented.
“The solidarity contribution does not constitute an intervention in the price formation mechanism and does not regulate the prices of energy products. The measure exclusively aims at the partial redistribution of exceptional income obtained by operators who process/trade crude oil from national production/energy products, in the specific context of a declared crisis”, claim representatives of the Ministry of Finance.
Through this package of measures, the Romanian Government aims to mitigate the effects of rising fuel prices, protect the purchasing power of the population and maintain a stable and fair economic climate.
The Government announced on Thursday that it will approve the reduction of the excise duty on diesel by 30 bani per liter, a measure decided by the working group established at government level to manage the fuel crisis, following discussions with market operators.
“A reduction of the excise duty on diesel by 30 bani per liter will be applied. At the same time, only one update per day of pump prices will be allowed. Following discussions with operators, it was concluded that other working options on the table would not have been applied uniformly and would have caused distortions in the supply of fuel. At the same time, the establishment of the solution took into account Romania’s budgetary limitations,” a Government statement said.
The government specifies that the funds necessary to reduce excise duties on diesel purchased by farmers and transporters, as well as for the application of the reduction mechanism, will come from additional VAT revenues generated by the increase in fuel prices, from the overtaxation of profits obtained from the exploitation of Romanian crude oil and from the state budget.
“The decision of the working group is to be implemented through an Emergency Ordinance that will be adopted in an extraordinary meeting of the Government, most likely on Friday. The measure decided on Thursday is added to those contained in Ordinance no. 19/2026, which has already led to a significant reduction in the price of diesel at most gas stations. The efficiency of the measures in force will be periodically evaluated to determine whether they need to be modified,” according to the press release.
The Romanian oil market is based on a domestic crude oil production of approximately 2.8 million tons and an import of approximately 9 million tons.
The average annual fuel consumption in Romania is at a level of about 9 million tons/year, of which the largest share is held by diesel consumption, with an average annual value of about 5.9 million tons/year (gasoline – about 2 million tons/year).