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Liberal Senate leader Florin Citu said today that price capping would immediately result in shortages, as no producer would be willing to invest in an industry with price controls, but that Romania is not moving in that direction.
"The price capping discussion happened before, in 2020, when the crisis was in full swing. This summer everyone was deploring the Romanian producers who were dumping their products because of the very low prices. Now we complain that the prices are very high. The best pricing mechanism is by supply and demand. Consumers meet with producers and that's where the price is determined, not by state intervention. Any interference with the market comes with very high costs," Citu said when asked about the possibility of food prices being capped.
In reply to a question about the rising fuel prices, he said that "capping means immediate shortages".
"The energy market, gas and electricity prices - that's a different market. And we have to be very careful there, because there are companies that want to invest in Romania, in this sector, but if we say that we will cap prices, that we will intervene in the market, nobody will want to put their money in a sector that is controlled by the government," Citu explained.
"Fuel prices have gone up last year too, then they went down. That's what prices do in the economy, they rise, they fall, price dynamics is normal," Citu concluded.
