The authorities should have reacted to the first signs of increase in fuel prices and to the weakening of the purchasing power of the leu against foreign currencies so as to avoid rises in the prices of other products. The suitable period was missed and the year started with a failure for the national economy, economic expert Viorel Chivriga stated for IPN, commenting on the probability of new price rises.
The expert said clear preconditions appear for chain increases. There is already a tendency as the fuel prices increase in spring, when field works start. The rise in fuel prices will generate increases in the prices of imported products.
“2014 is a specific year. If the prices go up at the beginning of the year, it means that the authorities voluntarily witness these developments. This can lead to changes in voters’ views. The authorities do not have a strategy how to change such a state of affairs,” stated Viorel Chivriga.
He also said that the authorities do not use all the instruments needed to keep the situation under control. They only cast a shadow over some of the responsible institutions, including the National Bank, the National Agency for Energy Regulation, the Competition Council and ministries.
Viorel Chivriga believes that the time when the authorities could intervene was missed. “We referred to two aspects – the fuel and the currency market. The state institutions missed the time especially in the second case. They didn’t provide explanations and didn’t take control measures,” he said.
From the beginning of this year, the leu has depreciated against foreign currencies, especially the euro, which now costs almost 19 lei. The gasoline prices have increased by up to 0.8 lei a liter recently.
