Romanian authorities mull new dynamic excise duty mechanism to curb fuel prices

27 July 2026 The Economic Committee, part of Romania’s upper legislative chamber, adopted a favorable report for the draft law on measures to reduce fuel prices on Monday, July 27. The bill must also receive the approval of the Senate plenary in order to continue its legislative process. If adopted, it will introduce, for the first time, a "dynamic excise duty" mechanism, under which the excise duty on fuel may be reduced by between 5% and 25%, depending on developments in pump prices. The new version of the bill abandons the VAT reduction initially proposed and retains only the excise duty reduction mechanism, after the Ministry of Finance warned that a VAT cut would not have been compatible with European legislation and would have sent a negative signal to rating agencies. Former energy