Mining and Energy Minister Dubravka Đedović Handanović reviewed Serbia’s fuel supply position with NIS chief executive Kiril Tyurdenev. The discussion covered refinery output, inventory levels, rail alternatives, and the availability of strategic reserves. The review focused on conditions affecting both product distribution and crude processing.
August diesel demand and distribution pressures
Diesel demand is forecast to reach approximately 200,000 tonnes in August, which would make it the strongest month of the year. Summer travel, agriculture, and freight activity are expected to add pressure to the distribution system. The ministry and NIS assessed how these demand factors align with available supply and logistics capacity.
Low Danube levels disrupt shipments and imports
Navigation restrictions have delayed river shipments while fuel prices in Mediterranean markets remain elevated. Imports fell to very low levels in July, and similar logistical conditions are expected to continue during August. The government is monitoring river conditions alongside rail capacity and alternative routes.
NIS increases Pančevo refinery processing under sanctions waiver
NIS responded by increasing production at the Pančevo refinery. The facility is processing approximately 11,000 tonnes of crude oil per day, equivalent to around 330,000 tonnes during August. Management said this level reflects the maximum achievable output under the company’s current one-month US sanctions waiver, valid until 28 August.
NIS also plans to raise processing capacity to approximately 13,000 tonnes per day in the coming months. At that rate, monthly throughput could approach 390,000 tonnes, depending on the operating schedule and crude-oil supply availability. The near-term operating plan is therefore linked to both refinery reliability and access to crude.
Inventories, sales expectations, and strategic reserves
Jet-fuel inventories are sufficient to cover approximately six weeks of domestic demand. Petrol production and distribution are described as uninterrupted. NIS expects combined diesel and petrol sales to reach their highest August level in five years.
Serbia retains strategic fuel reserves that can be released if commercial inventories or refinery supply prove insufficient. In the current context of disrupted Danube transport, supply security has shifted toward domestic refining capacity rather than imported products. Pančevo’s operating reliability and continued access under NIS’s sanctions authorisation remain central to maintaining supply levels through August.
