Moldovan government seeks balanced solutions to fuel crisis; cabinet's solution economic stability

The government of Moldova confirms that it is closely monitoring developments on international energy markets, in the context of concerns expressed by agricultural producers. The authorities give assurances that the agricultural sector stays a strategic priority, but emphasize the need for solutions that do not jeopardize the state budget.

“We maintain constant dialogue with industry organizations, in order to assess the available options and to identify balanced solutions within the real limits of the budget,” the government notes in an official statement.

The central message of the authorities focuses on prudence, avoiding promises of large-scale subsidies that could create medium-term economic risks.

“Our priority is to act responsibly, so that we maintain economic stability and support vulnerable sectors without creating additional risks,” according to the cabinet.

To clarify the directions of intervention, the ministers responsible for the economic and agricultural sectors will deliver official statements on March 4, before the government meeting.

This government’s reaction comes in response to a call launched by the Farmers’ Force Association, which warns that the agricultural sector is at a critical point, because of the military conflict in the Middle East.

This external crisis has already led to an increase of over 10 per cent in oil prices, turning diesel fuel “into an unbearable expense for local producers.”

“Farmers are already financially exhausted, after years marked by severe drought, frosts and other adverse weather conditions. Without immediate measures, the association foresees a drastic reduction in cultivated areas and the bankruptcy of many farms,” says the Farmers’ Force organization.

The measures requested by the association include wholesale purchases, ensuring the possibility to buy diesel fuel through centralized mechanisms at lower prices than at the pump, as well as the reinstatement of excise refunds. Farmers consider it imperative to resume the mechanism for refunding the excise duty on diesel, a tool previously applied in the period 2022–2023.

At the same time, the government is seeking a “middle ground” that would help farmers without destabilizing public finances.