Fuel Excise Cut Expires, Drivers Await June Prices
The temporary reduction in excise duties on petroleum products lapses at midnight on May 31, leaving drivers waiting for a new government decision on whether fuel rises in June.
- The temporary cut in excise duties on petroleum products lapses at midnight on May 31.
- The excise on unleaded petrol stands at 57.6 dinars and on diesel at 59.23 dinars per litre, while the full statutory rate for petrol reaches 72 dinars.
- Pump prices stay fixed through June 5: euro diesel at 222 dinars and petrol at 196 dinars per litre.
- A new government decision will determine whether fuel rises from June.
The temporary reduction in excise duties on petroleum products, which has eased the cost of filling up for drivers in recent weeks, lapses at midnight on May 31. The decision to cut the duty was signed by Sinisa Mali, First Deputy Prime Minister and Minister of Finance, and was adopted on May 14 with effect from May 16.
The reason for the lower duty was a rise in supply costs. The decision stated that the cut was made “due to an increase in producer prices of petroleum products as a result of the rising price of crude oil on the global market”. With that measure now expiring, attention shifts to the next decision, which will set the level of the levy for June.
How much was the excise actually cut?
The gap between the temporary and full statutory rates shows how much the measure eased the burden per litre. The current excise duties stand at:
- 57.6 dinars for unleaded petrol, against a full statutory rate of 72 dinars
- 61.24 dinars for leaded petrol, against the full 74.04 dinars
- 59.23 dinars for diesel
The excise is the part of the price that does not move with the supply cost of fuel, but is instead a fixed levy per litre. As a result, any return to the full statutory rate directly raises the retail price, regardless of what happens to crude oil. The difference of roughly 14 dinars per litre on unleaded petrol is far from trivial for consumers who fill up regularly.
The reduction was made due to an increase in producer prices of petroleum products as a result of the rising price of crude oil on the global market.
What happens to prices in June?
For drivers, the key point is that current pump prices hold until June 5. A litre of euro diesel costs 222 dinars, and a litre of petrol 196 dinars. These prices are set in regular periodic cycles and remain unchanged until that period ends, even though the excise measure expires earlier.
The central question is whether the new government decision will extend the lower levy or restore the excise to its full statutory level. If the excise returns to the legal maximum, the price could be revised upward as early as the next pricing cycle. If the government extends the relief, drivers would keep the existing price level. The decision due in the coming days will show which way the fuel levy is heading.
Would you change your driving habits if fuel gets more expensive in June?
