Romania Considers Reopening Petrotel Refinery to Stabilize Fuel Prices Amid Global Oil Volatility
Bucharest, The Gulf Observer: Bogdan Ivan has announced that the government is considering reopening the Petrotel Lukoil Refinery to increase domestic fuel processing and help stabilize prices following global market volatility linked to the conflict involving Iran.
Speaking in an interview on March 9, Ivan said restarting the refinery in Ploiești could allow it to process up to 20 percent of Romania’s refined oil, boosting the availability of petroleum products in the domestic market.
The government is also evaluating a broader set of measures to stabilize the fuel market. A planned technical overhaul at the Petromidia Refinery has been postponed, while the Petrobrazi Refinery is currently operating at maximum capacity.
Ivan said that increased refining capacity would help ease pressure on the market as global energy prices fluctuate following the recent escalation in the Middle East involving Iran, a major oil producer.
The Petrotel refinery, along with other assets owned by Lukoil in Romania and elsewhere, is currently up for sale due to pressure from US sanctions. The portfolio, valued at around $22 billion, is being overseen by the United States Department of the Treasury, which recently extended the deadline for completing the sale to April 1, according to reports.
Last year, the Romanian government placed the Petrotel refinery under supervision but refrained from direct management until a new owner is identified.
Fuel prices in Romania have already risen following the escalation in the Middle East. According to the energy minister, prices have increased by an average of RON 0.50, although the rise remains lower than in several other European countries.
Currently, diesel costs around RON 8.70 per liter, while gasoline has surpassed RON 8.30 per liter. Experts warn that if global crude oil prices exceed $100 per barrel, fuel prices in Romania could climb to RON 10 per liter.
Global oil prices were reported at about $87 per barrel, down from a recent high of $95, but continued volatility could have broader economic effects. Officials warned that rising fuel costs could spill over into other sectors, potentially fueling inflation.
Ivan added that the government is working closely with the Finance Ministry and other agencies to develop strategies to shield citizens, transport companies, and farmers—especially as the spring agricultural season begins—from further price increases.
