Romania Allocates RON160M To Help Low-Income Families Pay Gas Bills

He said the state aid for underprivileged social categories will increase by 12.5% to RON262 from RON230.

The government approved the hike of gas bill subsidies in the Wednesday meeting, following a memo drawn up by the Ministry of Economy and Finance and the Labor Ministry, Tariceanu mentioned.

Earlier Wednesday, Tariceanu announced the two ministries were to elaborate a set of measures to help pensioners and people with low incomes pay their gas bills.

Tariceanu added that although prices are set by the market, the government is usually made a scapegoat and blamed for any price hikes.

Tariceanu told Cabinet members at the beginning of the weekly meeting that the government and himself, as a prime minister, are concerned about the increased prices for natural gas and electricity and the impact this will have on people in general and underprivileged social categories in particular, the government said in a press release.

The prime minister reminded this is no the first time the government makes decisions to soften the effect of utility price hikes on people.

Tariceanu said the Ministry of Economy and Finance is to continue to work with the Ministry of Labor to come up with a set of measures to aid underprivileged social categories affected by utility price increases, namely pensioners and people with very low incomes.

"Let it be clear. This is not populism, we are only addressing underprivileged categories,” Tariceanu said in the press release.

He also referred to the decision of the country’s energy sector regulator ANRE to raise electricity and natural gas prices as of Jul 1, saying the government is being scapegoated and blamed for the increases. However, he added that in a market economy, such as Romania’s, prices are set on the market by supply and demand, not by the government.

Romanian President Traian Basescu had talks Tuesday with representatives of political parties on the recent utility and food price hikes, adding he would also meet for talks with the government in this respect. Following the talks, the president’s office issued a press release saying the government and politicians should avoid addressing price hikes with populist measures. The president asked Cabinet members present to come up with a set of measures addressing underprivileged social categories, without threatening the country’s goal to lower inflation.

One week ago, after the energy regulator said natural gas prices would increase an average 12.5% and electricity prices would increase an average 5.3% as of Jul 1, labor minister Paul Pacuraru said the government would approve a draft act this week, authorizing the grant of additional aid worth a total RON150-200 million to people with low incomes, to compensate for the energy price hikes.

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