Romania plans to hike gas taxes to rev up revenue

MarketsAssociated Press

Romania's government plans to increase gasoline and diesel taxes after income revenue from fuel fell at the start of the year.

Under the proposal, a liter (0.26 gallons) of gasoline or diesel will cost about 0.5 lei (13 cents) more after the price hikes, which will to come into effect Sept. 1. Romania has some of the lowest fuel prices in the EU, with a liter costing just under a euro (85 cents).

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The government said Tuesday taxes represented about half the cost of gasoline, less than in other European Union states, where they are about 60 percent.

The government said revenue dropped by 768 million lei ($199 million) in the first quarter of 2017 compared with a year earlier. It pledged to not raise fuel taxes again before 2020.