Serbia Extends Fuel Price Cap to Dec 31, Diesel 236 Dinars

Serbia’s caretaker government has extended the decree capping oil derivative prices until December 31, while the 25% cut in excise duties applies until October 25. The maximum retail price of Euro diesel and Euro Premium BMB 95 gasoline is still calculated as the average wholesale price in Serbia plus 21 dinars.

What does the amended fuel price decree say?

The decree amending the Decree on Limiting Oil Derivative Prices was published in the Official Gazette and took effect on the day of publication. Until December 31, the maximum retail price including VAT for Euro diesel and Euro Premium BMB 95 equals the average wholesale price of those fuels across Serbia plus 21 dinars. For Euro diesel meant for registered farms, the cap is 184 dinars per liter.

Prices are set every week, in a fixed order:

• every Friday by 1 p.m., the Ministry of Mining and Energy calculates the average wholesale prices
• it sends those prices to the Ministry of Internal and Foreign Trade
• by 3 p.m., that ministry sets the maximum retail prices and publishes them on its official website

No other fees or costs can be added to the maximum price unless the decree or other regulations prescribe them. Violations carry fines of 5,000 to 2,000,000 dinars, and a legal entity can also be hit with a protective measure banning certain activities for six months to a year. The Ministry of Internal and Foreign Trade oversees enforcement.

How high are fuel excise duties until October 25?

The Ministry of Finance confirmed the extension of the reduced excise duties to Tanjug. The previous decision ran until Sunday, October 18, and the new one covers another seven days, until October 25. It applies to leaded and unleaded gasoline and to gas oils. After the reduction, excise duties are:

• leaded gasoline: 57.41 dinars per liter
• unleaded gasoline: 54 dinars per liter
• gas oils: 55.53 dinars per liter

What do fuel prices look like this week?

Maximum retail prices stay unchanged for the next seven days: a liter of diesel costs 236 dinars, and a liter of BMB 95 gasoline costs 207 dinars. We published the prices for the period until October 23 earlier. Dubravka Djedovic Handanovic, the caretaker Minister of Mining and Energy, told RTS that prices have not changed since September 18 and that the state is ready to step in from its commodity reserves:

“The state is ready to intervene on the market, above all through its diesel and gasoline reserves, as we have done so far, so that citizens will not be left short of anything. Prices have not changed since September 18, even though on the market they have only been rising over the past period. We have enough reserves to react, currently 517,000 tons of diesel and about 104,000 tons of gasoline, so citizens will not be left short of anything.”

According to RTS, the state recently drew about 5,000 tons of diesel from commodity reserves, and an export ban is in force alongside the price cap.

What is happening to oil prices on the world market?

The pressure comes from abroad. Brent crude futures rose by $3.94, or 3.7%, to $109.86 a barrel, the highest level since May 19, according to Reuters. U.S. WTI crude closed at $101.41, up 3.5%. Since the start of the week, Brent has gained 4.9% and U.S. crude 10.4%.

Analysts at Kpler say that intensified Iranian attacks near the Strait of Hormuz have caused a significant drop in oil shipments from the Persian Gulf. RTS reports that a barrel of crude has stayed above $100 for almost a month, and the International Energy Agency warns that the diesel crisis could last until the middle of next year. The same agency has arranged the delivery of more than 20 million barrels of diesel from emergency reserves.

Excise cuts now run until October 25, and the price cap until December 31.