Romania Extends Food Price Cap Until March 2026 to Support Low-Income Citizens

Government Approves Extension of Food Price Cap

The Romanian government has officially extended the cap on commercial markups for 17 basic foodstuffs until March 31, 2026. The decision, made following discussions within the governing coalition, aims to continue supporting low-income citizens and stabilize prices in the face of inflationary pressures. This measure was initially implemented in June 2023 and has seen several extensions since then.

Details of the Extended Measure

The price cap mechanism limits the commercial markups applied by various entities in the supply chain. Typically, food processors are restricted to a maximum 20% markup on production costs, while distributors face a 5% markup limit on purchase and operational costs. Retailers and cash-and-carry stores are permitted a maximum 20% markup on their purchase prices and associated expenses.

The list of 17 basic foodstuffs covered by the cap includes a range of essential items:

• Bread
• Milk
• Cheese
• Yogurt
• Flour
• Cornmeal
• Eggs
• Sunflower oil
• Chicken meat
• Pork meat
• Fresh vegetables
• Fresh fruits
• Potatoes
• Sugar
• Sour cream
• Butter
• Plum jam

Political Context and Stated Impact

The extension followed a period of internal debate within the governing coalition. The Social Democratic Party (PSD) strongly advocated for the continuation of the measure, citing its effectiveness in protecting the purchasing power of Romanians. Prime Minister Ilie Bolojan had initially expressed reservations, suggesting that a previous extension in June 2025 was intended to be the final one. However, the coalition ultimately agreed on the extension.

Proponents of the cap, including Secretary General of the Government Ștefan Radu Oprea, argue that it has proven efficient in curbing speculative price increases and contributing to a reduction in inflation. Agriculture Minister Florin Barbu also welcomed the decision, stating that the measure has been useful in protecting the purchasing power of low and medium-income citizens. While some analysts remain skeptical about the macroeconomic impact, government officials maintain that the cap is crucial for maintaining price stability for consumers.