The Romanian Government is actively considering the reactivation of the Petrotel refinery in Ploiesti as part of a strategic initiative aimed at stabilizing the national fuel market. Energy Minister Bogdan Ivan highlighted that the reopening could enhance the availability of petroleum products, which is crucial given the escalating global oil prices influenced by geopolitical tensions, particularly the ongoing conflict in Iran. The refinery has the capacity to process approximately 20% of Romania’s total refining volume, thereby potentially increasing local supplies of petrol and diesel.
This proposal forms a component of a broader governmental strategy designed to address volatility within the energy sector. In conjunction with plans for Petrotel, operational adjustments are being made at other refineries. Notably, maintenance activities at the Petromidia refinery have been deferred, while the Petrobrazi refinery is currently functioning at full capacity to ensure adequate supply levels are maintained.
Petrotel is owned by Lukoil, a Russian oil company whose assets in Romania are subject to divestment due to US sanctions. The divestment process is being managed by the US Treasury Department and has a newly extended deadline of April 1. The Romanian authorities placed Petrotel under supervision last year but have refrained from direct management involvement as they seek a new owner. Officials believe that restarting operations at Petrotel could serve as a buffer against fluctuations in international oil prices.
Minister Ivan also noted that recent increases in crude oil prices have already affected fuel costs across Europe. In Romania, average retail prices have seen an uptick of approximately 0.1 euros per liter; however, this rise remains less pronounced compared to several other European nations. Currently, diesel prices are around 1.74 euros per liter, while petrol has exceeded 1.66 euros.
Energy analysts emphasize that the pricing structure for fuel in Romania is significantly influenced by taxes and duties, which account for about half of the final retail price. Dumitru Chisalita, head of the Intelligent Energy Association, indicated that the government faces constraints in reducing these charges due to the necessity for higher tax revenues to address a substantial budget deficit.
