Serbia Extends Fuel Excise Tax Cut Until September 13

Serbia’s excise tax on petroleum products will stay cut by 20 percent for another week, until September 13. The government made the decision on September 4, a day before the previous measure was set to expire.

The prior Decision on the Temporary Reduction of Excise Tax Amounts was valid through September 6, the date on which fuel prices would have risen by the amount of the restored tax had the cut not been extended. Instead, the 20 percent reduction stays in place for another seven days.

The government cited rising producer prices for petroleum products, driven by a jump in crude oil prices on world markets, as the reason for the extension. It has renewed the measure repeatedly in past months, each time citing the same explanation.

The reduced excise tax amounts in effect through September 13 are:

• leaded gasoline: 61.24 dinars per liter
• unleaded gasoline: 57.60 dinars per liter
• gas oil (diesel): 59.23 dinars per liter

RTS was first to report the news, and the Finance Ministry confirmed the decision to the Tanjug news agency.

Even with the lower excise tax, pump prices keep climbing. The Ministry of Internal and Foreign Trade published new weekly prices, and as of September 4 a liter of diesel in Serbia costs 234 dinars, gasoline 205 dinars. Both fuels rose by two dinars per liter compared to the previous week, as the increase in crude oil prices outweighs the effect of the lower excise tax.

Before this decision, this outlet had reported that the excise tax cut was set to expire on Sunday, September 6, with the same prices of 234 dinars for diesel and 205 dinars for gasoline. The government’s new decision keeps that price, at least for now, unchanged for another seven days.