The latest European statistics show that on August 27 of 2012 one liter of diesel cost EUR1.36 in Romania. One liter of diesel could be bought in Malta oil stations for EUR1.35, in Bulgaria for EUR1.32, while Luxembourg sells the cheapest diesel oil in the European Union. Around 5.8 million tons of fuel were consumed last year in Romania, with diesel being the fuel that recorded volume rises, while gasoline recorded declines. Two thirds of fuel consumption is accounted for by diesel sales, while the rest are the volumes of gasoline sold.
European statistics also show that a Luxembourger has net earnings of almost EUR27,500 per year, i.e. almost EUR2,300 per month, with the data corresponding to 2010. While Luxembourgers are the richest citizens of the European Union, Romanians and Bulgarians are at the bottom of the ranking, earning around EUR297 and EUR189.6 per month respectively. But both Romanians and Bulgarians pay more for diesel oil than Luxembourgers. While a Romanian can buy 218.5 liters of diesel oil with one month’s earnings, a Luxembourger can buy over 1,700 liters.
Taxes are the main culprit
European statistics also show that taxes are to blame for this. One liter of diesel in Luxembourg costs almost EUR0.82, but EUR 0.79 in Romania. So, if you remove taxes, the liter of diesel oil in Romania is cheaper than in Luxembourg.
These costs come despite Luxembourg being almost completely dependent on energy imports, with oil accounting for the largest imports. On the other hand Romania produces locally almost half the oil it needs, which should help achieve lower costs for oil products.
This small advantage of lower costs is however cancelled by taxes. The Value Added Tax (VAT) is 24% in Romania, but just 15% in Luxembourg. As for other taxes, in Romania they are EUR0.3 per liter, while in Luxembourg taxes amount to EUR0.33 per each liter of diesel.
As for the liter of gasoline, Romania has the cheapest fuel in the European Union, but price differences from one country to the next are very small, while the purchasing power differs significantly.
Since the beginning of this year, the liter of gasoline has become 12.4% more expensive the price of diesel oil went up by over 9.1%, with some of the reasons that oil companies have cited for the price increases being the evolution of the oil barrel price since the beginning of the year and in particular the significant depreciation of the leu against the US dollar.
Nothing but empty talk
The price of fuel has in the past few years determined tough political reactions, but aside from speeches directed against oil companies, concrete measures have failed to be taken. So, while politicians criticized oil companies, the prices of gasoline and of diesel oil have doubled since the beginning of 2009, exceeding even the psychological threshold of RON6 per liter.
(English version by Daniela Stoican)