Amid escalating fuel prices influenced by geopolitical tensions in the Middle East, Montenegrin authorities have decided to cancel a planned procurement of diesel intended for the country’s strategic reserves. The procurement tender, estimated at around 11 million euros for 16,500 metric tons of EN 590 diesel (equivalent to approximately 19.6 million liters), aimed to enhance the nation’s mandatory petroleum reserves.
The Administration for Hydrocarbons attributed the cancellation to rapid price increases in the Mediterranean fuel market, which significantly limited the amount of diesel that could be procured within the allocated budget. This decision marks the second attempt to secure diesel supplies, following a previous tender that was withdrawn due to non-compliance issues with the only bid received from Jugopetrol.
Recent weeks have seen notable increases in fuel prices within Montenegro, with petrol rising by 7 eurocents per liter and diesel by 16 eurocents. Despite these hikes, diesel remains less expensive than in neighboring countries such as Serbia, Croatia, Slovenia, and Albania, although it is costlier than in Bosnia and Herzegovina and North Macedonia.
Officials have reassured that Montenegro’s fuel supply remains stable, with no immediate shortages or threats to market stability. The country currently holds strategic petroleum reserves totaling approximately 44,260 metric tons, which serves as a buffer against potential supply disruptions.
However, smaller fuel companies that rely on road imports without adequate storage facilities are encountering difficulties as market prices have surpassed regulated retail levels, affecting their profitability. In response to these challenges, fuel distributors have proposed regulatory adjustments, including a revision of the 14-day retail price calculation period and potential reductions in excise duties. Finance Minister Novica Vukovic noted that while a formal proposal to reduce fuel excise taxes has not yet been made, it remains under consideration based on ongoing developments in energy market conditions.
