Romania may set higher fees

Romania’s government wants to increase royalties for natural-gas storage, crude-oil transport and mineral resources and raise about USD 371 million over the next four years. The government plans to increase the royalty to 15% of revenue from crude-oil transport from the current 10% and to 5% for underground gas storage from 3%.

The government is trying to bring in more revenue form the energy industry to the state budget as it cuts spending to meet pledges to the IMF and the EU and reduce its budget deficit to below 3% of GDP form next year. It plans to sell minority stakes in two utilities, natural-gas producer Romgaz SA and oil company OMV Petrom SA this year and next to raise funds for infrastructure projects.

Source: Bloomberg