Serbia Releases 5,000 Tons of Diesel From State Reserves
The Ministry of Mining and Energy signed its first contracts and released 5,000 tons of euro diesel from state reserves, two days before NIS's license was set to expire.
The first 5,000 tons of euro diesel from Serbia’s mandatory state reserves began moving to the domestic market on Monday, September 28. The Ministry of Mining and Energy signed the first contracts with oil companies, Minister Dubravka Djedovic Handanovic confirmed. She holds the post in the government’s technical mandate (sd.rs, Telegraf Biznis).
The government decided to release the reserves last week, and Srpske Novine covered the move on September 24 in a report titled “Government to Release 5,000 Tons of Diesel From Mandatory Reserves.” At the time, the minister explained the decision:
“As we promised, the state is taking the measures necessary to protect citizens so they don’t feel the effects of this global energy crisis, just as they haven’t so far. That is why we decided to release about 5,000 tons of euro diesel from state reserves onto the market.”
Why Now
A day before the contracts were signed, on September 27, the minister told Danas the outcome would come quickly: “We expect contracts with the companies to be signed within the next day or two, and for the withdrawal to begin.” The contracts were signed, and the withdrawal has started.
The intervention comes down to price. World market quotes for diesel have topped $1,500 a ton, occasionally reaching $1,600, the minister said (Vojvodjanski reporter). Oil companies have slowed imports as a result, and low water levels on the Danube have pushed up logistics costs: fuel that used to arrive by barge is now shipped mostly by rail.
For October, the Ministry expects euro diesel consumption of around 205,000 tons, following an estimated 200,000 tons in September.
Reserves and the Looming Deadline
Despite the 5,000-ton withdrawal, stocks in state warehouses remain high. According to the minister, reserves of oil derivatives have doubled since 2022, since the state filled its warehouses in time.
The intervention also comes ahead of a deadline bearing down on the Pancevo Oil Refinery. The plant operates under a license from the US Office of Foreign Assets Control (OFAC), which expires September 30, just two days after the reserve withdrawal contracts were signed. NIS requested a new license on September 24.
