The effects of energy and fuel price rises
In Romania, gas and electricity bills, as well as the price of fuels are going up, which will trigger a rise in the prices of most products and services, foodstuffs in particular
Corina Cristea, 02.10.2017, 14:31
The month of October will bring Romanians higher electricity and gas bills, as well as more expensive fuels along with the coming into effect of the second increase in the excise duty.
As regards the price of electricity, the National Energy Regulatory Authority (ANRE) has decided that, as of October 1st, domestic consumers will have to pay more, by 0.03 lei per kilowatt. The president of the agency, Niculae Havrilet, has explained that this will translate into an additional 3.45 lei (0.75 Eurocent) per 100 kWh every month. Also, the agency vice-president, Emil Calota, has announced that the price of gas for domestic consumers will increase by an average of 6% in the fourth quarter of the year. A final decision in this respect is to be made this week.
The first increase was operated on September 15th, when the excise duty on fuels went up by 0.16 lei per liter, which triggered an increase in the price of fuels charged by gas stations. Therefore, it is very likely that the effects of the second growth will be the same. According to companies operating in the field, the effect of the first measure was an increase by 9 bani (2 Eurocents) per liter, but prices were changed even before the official coming into force of the decision.
Against this background, the price of the cheapest types of fuel has reached 5 lei per litter, as compared to 4.7 — 4.8 lei in mid September.
However, this will not just mean that Romanians will have to pay more in order to use their personal vehicles. Electricity, gas and fuels are used in each and every sector of the economy, so the effect will be manifold and everything, products and services, will become more expensive.
The explanation is simple: they influence production costs, the costs of transportation, trade and everything will be reflected in prices. Dragos Frumosu, the president of the trade union federations in the food sector has stated that the prices of all foodstuffs will get by 5-6% higher, in particular meat and meat products, dairy products and bread. Also growing will be Romanians’ interest rates, given that the Romanian Interbank Offer Rate (ROBOR) has also been increased to the double it was early this year.
