What good does it do Romania to have oil reserves if fuel price increases can bring recession back?

In just two months' time, the price of petrol went up 2.6%, while that of diesel oil has risen 5%.

Economic analysts believe the major fuel price increases could drag Romania back into recession, saying the national advantage of having its own reserves is next to zero.

The price of petrol and diesel oil sold in Romania has reached historic highs, with certain fuel varieties rapidly approaching the 6 lei per litre mark, after five price hikes have been made since the beginning of the year.

In addition, violence in North Africa yesterday brought the oil barrel to 116 dollars, with some fearing it could exceed the 147-dollar historic high reached in 2008.

Romania, which produces almost half its oil needs through Petrom, seems to have no advantage, at least as far as the price paid by consumers is concerned, when compared with countries with little resources, which have to import massively, as is the case of Bulgaria, Hungary, Poland and other EU member states.

"We do not have benefits from the fact that we have oil reserves here. We are not talking about the jobs or about whether or not Romania would manage if deliveries were suspended, but about the price advantage of the end consumer. If we were completely dependent on imports, perhaps we would not have controlled prices any more, as is the case for natural gas," said Daniel Dăianu, professor of economics and former finance minister.

Representatives of Petrom, the biggest company in Romania, explain, however, that the price of fuel has nothing to do with the oil reserves, but with market conditions. By making fuel more expensive and by cutting costs, Petrom managed to post a net profit of over 520 million euros at the end of 2010, a record-high level reached in the second consecutive year of recession for the Romanian economy.