The Moldovan government to allocate 108 million lei to compensate farmers for excise duties on diesel fuel used between March 1 and May 31
The corresponding draft Regulation on the procedure for providing financial assistance for partial compensation of excise duties on diesel fuel was considered at a meeting of state secretaries this week. The draft establishes a mechanism for the distribution of financial resources through the Agency for Intervention and Payments in Agriculture (AIPA) to compensate for excise duties on diesel fuel used in agricultural activities. The money - 108 million lei - is planned to be allocated from the government's Intervention Fund. Excise duty compensation will be paid at 100% of the excise duty rate set for 2026, i.e., 3,978.95 lei per ton, with a maximum aid amount of up to 200,000 lei per beneficiary. The explanatory note to the draft law notes that the compensation for excise duty on diesel fuel is a temporary measure aimed at reducing the impact of rising oil prices on the production costs of agricultural producers. This increase is due to developments in the energy markets and the economic consequences of the war in the region. The establishment of a maximum support limit per beneficiary is aimed at preventing a disproportionate concentration of budget funds among a limited number of recipients and ensuring access to support measures for as many agricultural producers as possible. It is noted that the escalation of the conflict in the Middle East and the risks to energy supplies through the Strait of Hormuz, through which 20-30% of the world's oil and liquefied natural gas supplies pass, could lead to an increase in global fuel prices and increased inflationary pressure. As Moldova is dependent on energy imports, rising fuel prices directly affect the cost of agricultural production, where diesel fuel is the main resource at all stages of the agricultural cycle, from soil preparation and sowing to harvesting and transportation of products. According to estimates by the Ministry of Agriculture, about 40% of the cost of raw materials in the agricultural sector depends on diesel fuel prices, which can cause a chain reaction of food price increases, especially for socially significant products. Additional pressure on farmers is exacerbated by the effects of drought, spring frosts, and other extreme weather events in recent years, which have reduced yields and worsened the financial situation of many farms. There are about 3,200 agricultural producers in Moldova, most of which are small and micro-farms, making the sector particularly sensitive to rising production costs. In total, the demand for diesel fuel for the spring agricultural campaign in crop production alone is 50.4 million liters, with significant amounts of fuel also required for the livestock sector. Excise tax compensation is expected to reduce production costs, support the competitiveness of local products, stabilize prices for agri-food products, and ensure the timely completion of agricultural work. It is also expected that the reduction in operating costs will allow farmers to direct the freed-up resources towards modernizing their farms, introducing modern technologies, and increasing productivity. The draft regulation is pending approval by the government. // 12.03.2026 — InfoMarket
