Isarescu Says Fuel Price Freeze Would Be Detrimental On Long Run

05.05.2011 By Florentina Dragu

A price freeze on fuels would be detrimental to Romania on the long run, central bank governor Mugur Isarescu said Thursday.

"I'm against any price freeze, even under exceptional circumstances, because history has thought us that such measures only bring comfort on the short-term," Isarescu told a news conference.

Mid-April, Prime Minister Emil Boc requested antitrust regulators analyze a possible price freeze on fuels in 2011, following repeated increases of pump prices.

Boc said the Competition Council and the Department of European Affairs should assess whether a national law allowing for a price freeze on fuels in extraordinary circumstances contravenes EU regulations in the field.

OMV Petrom (SNP.RO), Romania's largest oil company, said in response that the measure "wouldn't be without consequences."

"Any such price freeze would be temporary and after the measure is lifted, there will be consequences, of course," said Mariana Gheorghe, chief executive officer of Petrom.

Romanian fuel prices increased by over 15% in 2010, after a 13% growth a year earlier, according to data from the statistics institute.