The subsidy of 0.5% lei / liter is insufficient

The National Union of Road Carriers of Romania (UNTRR) points out that the measure prepared by the Government for transport and distribution companies, which will grant a subsidy of 0.5 lei / liter, is insufficient in relation to the size and needs of the transport industry road users.
The government announced that the budget of the aid scheme amounts to 300 million lei (60.6 million euros). At a refund of 0.5 lei / liter, a consumption of only 600 million liters of diesel is covered, given that, in Romania, diesel consumption is 8-9 times higher.

A truck travels an average of 9,000 km nationwide, and at a monthly consumption of 30l / 100 km, the monthly cost of diesel would amount to 4,590 euros per truck. The reimbursement measure proposed by the Government would return to the companies approximately 270 euro / truck, respectively only 5.9% of the monthly cost of diesel per truck.

Thus, the budget proposed by the Government would subsidize diesel for only less than 5% of the total fleet of commercial vehicles, given that in Romania there are 40,500 road transport companies of goods and people, respectively 165,000 vehicles for road transport of goods and 46,000 of vehicles intended for the carriage of passengers by road. At the same time, approximately 870,000 freight vehicles are registered.

In addition, the refund process follows the excise duty refund procedure – a process that went awry.

At the first return of the excise duty in the period 2014-2017, although the amounts initially allocated amounted to approximately 2 billion lei, in reality requests amounting to only 67.7 million lei (3.4% of the initial budget) were paid, from due to limited processing capacity and the availability of funds in real terms.

UNTRR reports that commercial road transport operators are on the verge of survival due to rising inflation and fuel prices amid the conflict in Ukraine.

Some road transport companies are close to shutting down, and if road transport does not work properly, supply chains, which have already been disrupted by the current situation, will be further affected until they are blocked. The biggest losers will be the customers of the carriers, the ordinary citizens and the businesses that will suffer if the costs of commercial road transport fall out of control.

Source: Cotidianul RO by

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