The removal of excise duty on diesel used in agriculture is a direct, fair fiscal measure compatible with European commitments, the League of Agricultural Producers' Associations in Romania said in a letter addressed to the Romanian Government, the Ministry of Energy and the Ministry of Agriculture and Rural Development.
"The need to eliminate excise duty on diesel used in agriculture - a direct, fair fiscal measure compatible with European commitments. Romanian agriculture is going through a period of heightened economic pressure, driven by rising production costs and market volatility. In this context, the price of diesel has become a critical factor for farm operations. Farmers currently pay more than 9.60 lei per litre, with annual consumption estimated at over 650 million litres nationwide. For a sector with low margins and structural dependence on energy inputs, this cost level can no longer be absorbed without direct consequences on production and competitiveness. LAPAR is not seeking preferential treatment, but is making this request on behalf of Romanian farmers, as a response to a fiscal dysfunction directly affecting agriculture. We call for the application of fiscal measures already adopted by other European Union member states facing the same crisis, to protect their farmers and consumers," the document states.
According to agricultural producers, one of the most important measures is the removal of excise duty at source.
"The current scheme requires farmers to advance around 2.80 lei for each litre of diesel, a sum that includes not only the excise duty itself but also the related VAT, with reimbursement taking place months later through complex administrative procedures. In a context where costs for fertilisers, inputs and financing have risen significantly since the end of 2025, this additional financial burden has become unsustainable for most farms. Eliminating excise duty at source would immediately ease cash flow pressure, significantly simplify administration, and would not represent a new budgetary cost, but rather a change in the mechanism for a tax that is already reimbursed later. This solution has been publicly supported by Agriculture Minister Florin Barbu, through the application of a zero excise rate directly at the pump for agricultural diesel, as well as in positions expressed by the Ministry of Energy and the prime minister, in the context of measures considered to mitigate fuel price increases," LAPAR notes.
Under these conditions, the organisation calls on the Government to urgently adopt a clear, coherent and applicable legal act allowing the removal of excise duty at source for agricultural diesel, without additional bureaucratic conditions.
"Alongside the fiscal component, we consider it legitimate for the state to assess how final fuel prices are formed along the distribution chain. Member states such as Austria have decided, in the same crisis context, to intervene temporarily by reducing taxation and limiting commercial margins, explicitly recognising the exceptional nature of the situation. Public intervention has not been presented as a distortion of the market, but as a measure to protect the real economy. Romania has the same legal instruments. In exceptional situations, protecting consumers - including farmers as strategic diesel consumers - is a responsibility of the state, not a deviation from market economy principles," the organisation's representatives said.
They also warned that removing the biofuel component from diesel as a quick solution to lower prices raises serious compliance issues with European legislation.
"Public debate has included proposals to eliminate the biofuel component from diesel as a quick solution to reduce prices. We stress that such an approach raises serious compliance issues with European legislation. Romania is obliged to comply with the biofuel blending mandate under the RED III Directive, transposed into national law. Any temporary derogation must be formally notified and justified to the European Commission. A unilateral decision lacking legal basis would affect Romania's credibility as a member state and its position in future negotiations on energy and climate policies. This position is not linked to the economic interests of any particular sector, but to compliance with common rules and commitments undertaken by the Romanian state," the letter states.
LAPAR emphasised that removing excise duty on diesel used in agriculture, applied directly at source, is the fastest, most effective and responsible measure the Government can adopt to support Romanian agriculture at a critical moment.
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