Motorists in Montenegro have seen only partial relief from falling global fuel prices after the government moved to reinstate most of the temporarily reduced excise duties introduced earlier this year. The revised measures apply to diesel and two petrol grades.
The decision was adopted late at night, just before the deadline for calculating new retail fuel prices, and entered into force immediately. It was not publicly announced until the following morning, several hours after implementation had already started, prompting questions about transparency in policy timing .
Revised excise rates for diesel and petrol
Under the updated structure, the excise duty on diesel has been restored to its full level of €0.44 per liter. Excise rates on the two petrol grades were raised to 95% of the standard rate, bringing them to €0.5215 per liter, against a full rate of €0.549 per liter.
Compared with pre-crisis levels in February, fuel prices remain higher. Diesel is now around €0.32 per liter more expensive, while petrol grades are up by approximately €0.25–€0.26 per liter.
VAT impact and link to retail pricing
Higher fuel costs have also increased VAT receipts because the 21% tax is applied to the final retail price, including excise duties. This means changes in excise levels feed through to the tax base used for retail pricing.
The government had first introduced temporary relief on 20 March. It cut diesel excise duties by 50% and reduced petrol duties by 25%, with authorities later reversing part of those reductions as international fuel prices declined .
Timing of fiscal changes ahead of retail price updates
The timing of these fiscal adjustments has drawn attention because excise changes have often been introduced only hours before new fuel prices take effect. Critics argue that last-minute shifts can affect predictability and transparency.
The concerns are linked to how obligations are triggered when fuel imports are declared to customs authorities . Excise adjustments made close to retail price calculation deadlines therefore coincide with the period when import declarations determine duty liabilities.
