Question mark on the increase of fuel price

Prime Minister Emil Boc stated that he received a report from the National Agency for Fiscal Administration with the analysis of the evolution of fuels and declared that, according to the document, the price increases of 20 percentthis last year `are not justified.`

Prime Minister Emil Boc requested the National Agency for Fiscal Administration to trigger general fiscal inspections in the oil companies to verify if the revenue from increased fuel prices are reflected in the profit of the companies and implicitly, in taxes, Radio România Actualităţi reporter, Liza Diaconu, communicates.

‘It was said that this increase in fuel prices is due to the tax burden placed by the government on the shoulders of Petron and the other companies.’

‘The analyses conducted revealed clearly that in the price of fuel, tax share is of 49.8 percent in 2010.’

‘The increase of fuel prices cannot be justified by the tax burden imposed by the government, because the share of taxes is of 49.8 percent of the price of fuel.’ Prime Minister Emil Boc declared.

The Head of Executive also requested the Competition Council to conduct an additional analysis in order to verify whether there was or not a monopolistic practise.

According to the Prime Minister, there is a question mark, as all companies increased fuel prices at the same time with almost the same percentage.

Emil Boc stated that he received a report from NAFA with the analysis of the evolution of fuel prices and declared that, according to the document, the price increases are not justified.

The price of fuel increased ‘unreasonably’

In a report came from NAFA it is shown that fuel prices have been unreasonably increased at the gas pump with 20 percent during last year without being determined by the evolution of stock quotes, foreign exchange and the taxes levied by the state.

The NAFA report also shows that almost all companies reported that they had significant loss, but gains were not properly reflected.

‘The vast majority of companies record significant loss.’

‘And then, consequently, we intend to trigger large tax inspections, especially focused on the transfer pricing file, since these companies are likely to have outsourced their profits towards their subsidiaries and affiliates, through transfer pricing’ the NAFA Director, Marian Murcoaşă, declared.

The government`s decision to regulate oil companies comes after many drivers have protested for several weeks at gas stations.

The drivers protested against the increase in gas and diesel prices, by fuelling their cars with small amounts of gas and paying in pennies.

According to the figures provided by the European Commission’s energy report, the price of gas sold at gas pumps in Romania, before applying taxes, is much higher than in countries without oil resources.

Thus, a thousand litres of Euro 95 gas was at the end of last year, in Romania, no taxes added, 593.26 euros, while in the UK was 549.24 euros, in Germany 579.95 euros and in Austria 539.91 euros.

Translated by: Manuela Stancu
MA Student, MTTLC, Bucharest University