The reduction of the biofuel content in gasoline from 8% to a minimum of 2%, as provided for in the draft emergency ordinance declaring a crisis on the oil market, directly harms agricultural producers and raises serious legality concerns at EU level, as Romania has not notified the European Commission and no other EU member state has adopted a similar measure, the Alliance for Agriculture and Cooperation (AAC) warns in an open letter to the authorities.
"We welcome the authorities' intention to protect the population and the economy by limiting commercial mark-ups and controlling exports. However, the measure to reduce the biofuel content in gasoline, publicly presented as a quick way to lower the final price, directly affects agricultural producers and raises serious issues of European legality and sustainability. No other EU member state has taken such a decision," AAC states in its letter to the Government, the Energy Ministry and the Ministry of Agriculture.
AAC points to the consequences of the Government's emergency ordinance on the declaration of a crisis on the oil market, published on Monday, and calls for amending Article 5 so that any temporary reduction is conditioned by "maintaining the annual 8% blending requirement, with monthly operational flexibility, and establishing an explicit compensatory mechanism for suppliers of agricultural raw materials."
The Alliance also urges the Government and the Agriculture Ministry to respect EU commitments on biofuels. The minimum biofuel blending mandate of around 7% biodiesel in diesel and bioethanol in gasoline is an obligation Romania assumed under the RED III Directive and transposed through OUG 80/2018. "Any derogation, even temporary, must be formally notified to the Commission and justified as an exceptional situation. A discretionary reduction, without prior notification and without impact assessment, cannot be considered a quick or beneficial market solution," the letter states.
AAC warns that such an unannounced derogation creates a dangerous precedent: "Romania risks losing credibility as a member state that respects its commitments in European energy and climate policy. The consequences would be felt immediately in future negotiations on RED IV, the European Green Deal and the allocation of CAP funds."
The organization also emphasizes the direct impact on Romanian farmers. "Reducing the BIO component hits farmers who have invested in rapeseed, sunflower and cereal crops for biofuels. These crops provide stable income for thousands of rural households, support crop rotation and reduce dependence on imported raw materials." A sudden drop in demand would generate market surpluses, depress vegetable oil and grain prices, cause immediate financial losses for farmers with existing supply contracts and trigger a domino effect across the agri-food chain, given that many oilseed crops serve both food and energy markets.
AAC argues that while the measure may offer a marginal short-term benefit at the pump, it undermines a strategic sector that contributes to energy security and emissions reduction, in line with Green Deal objectives. The biofuel industry also supports thousands of rural jobs, and any contraction would accelerate depopulation and poverty in vulnerable areas.
The Alliance proposes alternatives that comply with EU law, such as reducing the excise duty on agricultural diesel - a targeted measure that directly supports farmers without breaching RED obligations. "This aid can be extended while maintaining the BIO blend, possibly with temporary support schemes notified to Brussels. Biofuels reduce dependence on imported fossil fuels, and sacrificing them for a temporary crisis contradicts Romania's green transition commitments," the letter notes.
AAC also stresses that reducing the blend from 8% to 2% has a limited effect on the final price compared with the already-approved cap on commercial mark-ups. Farmers do not oppose consumer protection measures, the organization says, but insist they must comply with EU law and avoid harming an already vulnerable agricultural sector.
The Alliance therefore calls for urgent measures, including a temporary excise reduction - estimated to cut prices by about 40 bani per litre - without affecting biofuel demand, and maintaining the 8% annual blending requirement with monthly flexibility.
"If the derogation was inevitable, the compensatory mechanism in Article 5(2) should have been mandatory, with clear deadlines and volumes, and explicitly extended to suppliers of agricultural raw materials, not only oil operators. Farmers are paying the price for a crisis they did not create. Romanian agriculture is not an adjustment variable in temporary crises," AAC explains.
The Energy Ministry's draft ordinance, published Monday evening declares a crisis situation on the crude oil and petroleum products market and limits the commercial mark-up applied by producers, importers, distributors and retailers of gasoline, diesel and related raw materials. The mark-up would be capped at no more than 50% of the average commercial mark-up recorded in the past 12 months, applying across the entire supply chain.
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