During its meeting, the Government approved a decision amending and supplementing Government Decision no. 1174/2014, setting both the level of the diesel fuel subsidy for 2025 and the amount allocated for the payment of state aid in 2025, through the budget of the Ministry of Agriculture and Rural Development (MADR). The decision also updates certain provisions in line with fiscal legislation and the evolving diesel consumption in the three targeted agricultural sectors: crop production, livestock farming, and land improvement.

Specifically, the normative act stipulates the following:

• For 2025, the reduced excise rate for diesel used in mechanized agricultural work in the crop production, livestock farming, and land improvement sectors is set at 104.49 lei/1,000 liters, representing the conversion of the minimum taxation rate of 21 euro/1,000 liters based on the euro exchange rate published by the European Central Bank on October 1, 2024, which is 4.9759 lei per 1 euro.
• For the same year, the difference between the standard diesel excise level of 2,317.59 lei/1,000 liters and the reduced excise rate of 104.49 lei/1,000 liters amounts to 2.213 lei/liter, granted as state aid in the form of a reimbursement.
• The total value of the state aid scheme for 2025 is 500,000,000 lei, provided from the state budget via the MADR budget.

Additionally, the decision introduces measures aimed at:

• aligning provisions with the current fiscal legislation, namely GEO no. 120/2021 on the administration, operation, and implementation of the national electronic invoicing system RO e-Factura and the use of electronic invoices in Romania;
• operationalizing the state aid scheme, including by updating the list of crops eligible for excise support and eliminating the sectoral distribution of diesel quantities eligible for excise support, while respecting the overall annual ceiling.

It is worth recalling that since 2015, Government Decision no. 1174/2014 has established the state aid scheme for reducing the excise on diesel used in agriculture by applying a reduced tax rate for diesel fuel used in mechanized agricultural operations in the crop production, livestock farming, and land improvement sectors. The state aid is granted as a reimbursement and is managed by the Agency for Payments and Intervention in Agriculture.