Serbia fuel excise rises: discount fades, IMF wants it gone by July
The temporary excise cut Serbia introduced in May is being phased out: excise on petroleum products rose by about 12.5 percent, and the IMF wants the discount fully gone by July.
- Excise on petroleum products rose by about 12.5 percent in late June as the May discount is gradually withdrawn.
- Excise on unleaded petrol now stands at 64.80 dinars per litre, and on diesel at 66.64 dinars per litre.
- The IMF recommends the temporary cut be fully removed by July 2026, assuming world oil prices hold at current levels.
- The next regular excise adjustment is set for July, with a possible further rise of 1.5 to 2.5 dinars per litre.
As of this week, excise on unleaded petrol stands at 64.80 dinars per litre, under the latest adjustment covering the period from June 22 to 28, 2026. That is up from the previous 57.60 dinars, the level that held while the temporary cut was in force. The same move pushed excise on diesel from 59.23 to 66.64 dinars per litre. On average, excise on petroleum products has risen by about 12.5 percent.
This is the gradual unwinding of a measure the government introduced in May. At that point excise was temporarily cut by about 20 percent, in response to rising world oil prices that were pushing up retail prices at domestic pumps. The measure was designed as a bridge, not a permanent relief, and its expiry means the burden the budget briefly absorbed is shifting back onto drivers. Excise amounts are adjusted weekly, so the figures you see on the pump display change from one week to the next.
How much will this cost a driver each month?
For an average household with one car, the return of excise to its full level means a higher monthly fuel bill even if the world crude price does not move. Excise is a fixed amount per litre, which means it hits every litre pumped equally, whether you fill the tank or top it up. For heavier users, hauliers and companies with a vehicle fleet, the effect multiplies with each vehicle and each kilometre driven, so an excise rise of a few dinars per litre quickly becomes a noticeable line in operating costs.
It helps to separate the two forces acting on the pump price. One is the world oil price and the exchange rate, which the government does not control. The other is excise, a domestic tax lever decided in Belgrade. The May cut used precisely that lever to soften the blow from the first factor. Now that the lever is returning to its original position, drivers pay more even if nothing dramatic has changed on the world market.
Why is the discount being removed right now?
The direction is clearly set in the recommendations of the International Monetary Fund. The IMF proposes that the temporary excise cut be fully removed by July 2026, on the explicit assumption that world oil prices stay at current levels. The logic is fiscal: every dinar of uncollected excise is revenue the budget does not see, and temporary tax breaks have a habit of becoming permanent if they are not withdrawn in time. For a government that values fiscal discipline, returning excise to its full level is a way to shore up the revenue side without introducing a new tax.
The next step is already on the horizon. The next regular excise adjustment is planned for July, with a possible further rise of 1.5 to 2.5 dinars per litre. That means the figures on the pump display have probably not yet hit their peak for the season, something drivers building a household budget should keep in mind when planning summer trips.
Will the return of excise change how you drive this summer, or will a rise of a few dinars per litre slip under the radar of your household budget?
