Reduction of excise duty on diesel for farmers: What GD 157/2026 brings
Through the Government decision supplementing Government Decision no. 1,174/2014 on establishing a state aid scheme for the reduction of excise duty on diesel used in agriculture, published in Official Gazette no. 218 of March 20, 2026, new essential provisions are introduced for the application of the state aid scheme regarding the reduction of excise duty on diesel used in agriculture for the year 2026.
What it provides
For the year 2026, the reduced excise duty rate for diesel used in agriculture is set at 106.72 lei/1,000 liters. This value represents the lei equivalent of the minimum taxation rate of 21 euro/1,000 liters, calculated at the exchange rate from October 1, 2025. This rate applies to diesel used in mechanized works in the crop, livestock, and land improvement sectors.
The state aid mechanism operates by reimbursing the difference between the standard excise duty and the reduced excise duty. Specifically, for the year 2026, the difference granted as state aid in the form of reimbursement is 2.697 lei/liter. This amount represents the gap between the excise duty level provided in the Fiscal Code (2,804.29 lei/1,000 liters) and the previously mentioned reduced excise duty rate.
The total value of the state aid scheme for the year 2026 is 620 million lei. This amount is provided from the state budget, through the budget of the Ministry of Agriculture and Rural Development, and is intended for making the necessary payments related to the application of the scheme in the period July 2025 – December 2025, as well as for payments in the year 2026.
To whom it applies
The provisions of this government decision apply to all economic operators in the agricultural sector who use diesel for mechanized works. This includes companies and authorized natural persons carrying out activities in the crop, livestock, and land improvement sectors, benefiting from the state aid scheme for the reduction of excise duty on diesel.
What you need to do
- Verify your company’s eligibility according to the criteria of the state aid scheme.
- Calculate the impact of the new reduced excise duty rate and the reimbursable value on operational costs.
- Ensure that the necessary documentation for requesting reimbursement is complete and updated.
- Submit reimbursement requests within the deadlines set by the Ministry of Agriculture and Rural Development.
- Monitor budget allocations and payment deadlines to optimize cash flow.
- Maintain clear and detailed records regarding diesel consumption and works performed.
- Seek specialized consultancy for the correct interpretation of norms and optimization of the application process.
Published in Official Gazette, Part I, no. 218 of March 20, 2026.
Note: This material is for general informational purposes and does not constitute legal, fiscal, or business consultancy. The manner of applying legal provisions may vary significantly depending on the specific circumstances of each company. We recommend seeking a dedicated legal opinion before implementing any operational decisions based on these changes.