Fuel Prices: Diesel Hits 227 Dinars, Petrol Stays 202

A liter of diesel at Serbian gas stations has cost 227 dinars since Friday afternoon, one dinar more than the previous week, while petrol held at 202 dinars. The new fuel prices were announced by the Ministry of Internal and Foreign Trade on Friday, August 7, and remain in effect until August 14.

The one dinar increase in diesel amounts to a 0.44% rise from the previous week’s decision. On a 50 liter tank, that means 50 dinars more per fill up, and for a fleet of ten delivery vehicles each burning 400 liters a month, the extra cost adds up to 4,000 dinars a month. For a household running a single diesel car, the difference is measured in tens of dinars; for a haulier, in thousands.

In the same days, the Government of Serbia extended the excise tax cut on petroleum products for another seven days, until August 16. The previous cut had been due to expire on August 9, so without an extension the excise burden on diesel and petrol would have risen from Sunday. The government cited the need to cushion the effects of expensive crude oil and refined products on the world market, framing the measure as a way to preserve supply stability and shield the domestic market from disruptions in international flows.

Why are two different dates in play?

Because these are two separate decisions with two separate deadlines. Retail fuel prices are set for a week at a time and published every Friday by 3 p.m., which is why the current prices run through August 14. The excise tax cut is a distinct measure, and it has been extended through August 16.

In practice, that means the next weekly price, due out on Friday, August 14, takes effect two days before the excise relief itself expires. If it is not extended again, the first calculation without the reduced excise falls in the middle of that pricing week, so the effect would not show up until the price published on August 21. Excise is a fixed amount per liter added before the margin, so a change in it is felt at the pump immediately, without the lag that comes with changes in crude oil prices.

Tobacco excise raised from August 8

Separately from fuel, new minimum excise amounts on tobacco products took effect on August 8, published in the Official Gazette. The minimum excise on cigarettes rose from 245.39 to 246.89 dinars per pack, an increase of 1.50 dinars or 0.61%. For cut tobacco, the amount went up from 8,588.65 to 8,641.15 dinars per kilogram, 52.50 dinars more, also a 0.61% rise.

The minimum excise is a floor that manufacturers must pay regardless of the retail price, so an increase shows up first on cheaper brands, while pricier ones remain above the threshold and do not move right away.

What came before

We reported on the supply situation earlier in the month, when NIS released 23,000 tons from its operational reserves to keep stations stocked. Back then the question was whether fuel was available; now it is how much it costs. Reserves solve availability, not the price on the pump display, which is shaped by the import price of refined products, the exchange rate, and the tax component in which excise is the single largest item.

The next confirmation comes on Friday, August 14, when the ministry publishes prices for the following seven days. Any decision on excise beyond August 16 is a separate act and will be issued on its own.