Why did the emergency ordinance regarding fuels receive a negative opinion from the Economic and Social Council?

The government led by Ilie Bolojan is preparing to adopt an emergency ordinance on Thursday to cap fuel prices, with the aim of reducing prices by a maximum of 50 bani per liter.

The Economic and Social Council (CES) issued a negative opinion, emphasizing that this intervention will have limited effects and will violate the principles of a market economy. CES warns that capping the commercial markup will lead to price increases for other products and will affect the supply of fuels. Furthermore, the measure will not protect consumers and will not generate real benefits for the business environment.

CES proposes a reduction in excise duties and VAT as a more effective solution.

Prime Minister Bolojan promised a new set of solutions next week, mentioning that the additional revenues from VAT will be reinvested to support citizens and the economy.