The government of Bosnia and Herzegovina’s Serb Republic, Republika Srpska, extended its fuel subsidy until October 15. The measure is designed to maintain support for consumers and businesses while crude oil prices remain close to $100 a barrel.
The programme sets the subsidy at €0.05 per litre. As participation expanded, the fiscal cost increased, with monthly reimbursements rising from about €900,000 in the first month to approximately €1.5 million. Total payments under the measure have reached around €7 million.
Fuel subsidy impact on transport and operating costs
The extension provides temporary protection against higher transport and operating costs. It also increases pressure on the entity’s public finances if higher oil prices persist. Fuel support can soften the immediate inflationary effect for households and companies, while shifting part of the price shock to the government budget.
RiTE borrowing guarantee for coal and thermal operations
Separately, the government approved a guarantee for new borrowing by integrated coal mine and thermal power plant operator RiTE. The loan is intended to finance purchases of mining dump trucks, though its value was not disclosed.
Taken together, the decisions reflect rising costs associated with maintaining energy affordability and supporting domestic coal production at the same time. The immediate political benefit is described as clear, while the duration of budget absorption remains unresolved if global oil prices stay high.
