Electricity and gas, as well as fuel prices increase again as of today, October 1, which will generate a chain reaction of price hikes for most products and services, especially for food, accompanied by raises of instalments for loans from banks.
Regarding the price of electricity, the National Regulatory Authority for Energy (ANRE) decided that as of October there will be an increase for household consumers by RON 0.03/kWh. ANRE President Niculae Havrilet explained that this means an increase of RON 3.45 per month for an average consumption of 100 kWh.
ANRE Vice President Emil Calota announced that the gas price for households will increase on average by 6% in Q4. The Regulatory Committee has not yet approved this decision, which will be made the coming week.
The Government has decided to raise the excise duty on fuel by RON 0.16 per litre as of September 15, and a similar increase takes place on October 1. On September 15, when the first increase in excise duty took place, fuel prices increased by RON 0.09 per litre, according to information from oil companies. But prices went up even before and after that.
Thus, according to petroleum companies’ websites, the price of the cheapest assortment of fuels came close to RON 5 per litre, up from RON 4.7 per litre at mid September for diesel and RON 4.8 per litre for gasoline. The more expensive varieties have exceeded by far the RON 5 per litre threshold.
The biggest problem is that energy, gas and fuel will lead to chain reactions in price increases for almost all products and services in the economy as they affect both the production costs as well as transport and the marketing segment.
For example, it is expected that foodstuff prices will eventually go up by 5-6%, Dragoş Frumosu, president of the food industry trade union federations says.
“If, for manufacturers, all these increases are 2-3% directly, the final price may be by 5-6% higher because transport influences the raw material prices, but the transport cost also includes the transport from the producer to the trader. Then the price of electricity is also borne by both the producer and the trader,” Frumosu said.
At the same time, the Romanian bank rates will also increase, along with the ROBOR level.
On Friday, ROBOR was on the interbank market at 1.58% for 3 months, as compared to 1.46% on Thursday and 0.87% at the beginning of the year.